Question

Zinc, LP was formed on August 1, 20X9. When the partnership was formed, Al contributed $10,000 in cash and inventory with a FMV and tax basis of $40,000. In addition, Bill contributed equipment with a FMV of $30,000 and adjusted basis of $25,000 along with accounts receivable with a FMV and tax basis of $20,000. Also, Chad contributed land with a FMV of $50,000 and tax basis of $35,000. Finally, Dave contributed a machine, secured by $35,000 of debt, with a FMV of $15,000 and a tax basis of $10,000. What is the total inside basis of all the assets contributed to Zinc, LP? $140,000. $165,000. $175,000. $200,000. $140,000 The partnership's total inside

Answer 1

$140,000

Step-by-step explanation:

The computation of the total inside basis of all the assets contributed to Zinc, LP is shown below:

= Contributed in cash + inventory tax basis + equipment adjusted basis + account receivable tax basis + land tax basis + machine tax basis

= $10,000 + $40,000 + $25,000 + $20,000 + $35,000 + $10,000

= $140,000