206k views
4 votes
Daniel acquires a 30% interest in the PPZ Partnership from Paolo, an existing partner, for $43,500 of cash. The PPZ Partnership has borrowed $14,500 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

a. $47,200.
b. $14,000.
c. $57,000.
d. $52.800.

User Tim Morton
by
8.1k points

1 Answer

4 votes

Answer:

the daniel basis in his partnership interest is $47,850

Step-by-step explanation:

The computation of the daniel basis in his partnership interest is shown below:

= Cash + Borrowed amount × interest acquiring percentage

= $43,500 + $14,500 × 30%

= $43,500 + $4,350

= $47,850

This is the answer but the same is not provided in the given options

Hence, the daniel basis in his partnership interest is $47,850

We simply applied the above formula so that the correct value could come

And, the same is to be considered

User Dmytro Krasun
by
9.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.