Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed

Question

Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and adjusted basis of $350. The store had a profit of $60,000 at the end of the year. What is Jerry's partnership basis in the bookstore at the end of the year? $23,000   $23,300   $23,350   $23,490 Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and adjusted basis of $350. The store had a profit of $60,000 at the end of the year. What is Jerry's partnership basis in the bookstore at the end of the year?

Explanation / Answer

Calculate partnership basis :

So answer is c) $23350

Share in profit 15000 Cash 25000 Cash regisster 350 Total 23350

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