Nicole owns a 50% interest in partneship J&K. She
contributed a computer system with a FMV of $15,000 and an adjusted
basis of $10,000 to the partnership. Neither Nicole nor the
partnership recognized any gain when the property was contributed.
Which of the follow is true regarding the partnership's basis in
the compiuter system and Nicole's outside basis?
1. Partnerships basis in computer system - 10,000. Nicole's outside basis increases by 10,000
2. Partnerships basis in computer system - 10,000, Nicole's outside basis increases by 15,000
3. Partnerships basis in computer system - 15,000. Nicole's outside basis increases by 10,000
4. Partnerships basis in computer system - 15,000. Nicole's outside basis increased by 10,000.
1. Partnerships basis in computer system - 10,000. Nicole's outside basis increases by 10,000
2. Partnerships basis in computer system - 10,000, Nicole's outside basis increases by 15,000
3. Partnerships basis in computer system - 15,000. Nicole's outside basis increases by 10,000
4. Partnerships basis in computer system - 15,000. Nicole's outside basis increased by 10,000.
