Question

For a​ 20% interest in partnership​ capital, profits, and​ losses, Kasi contributes a machine having a basis of​ $30,000 and an FMV of​ $40,000. The partnership also assumes a​ $24,000 recourse liability secured by the machine. The partnership has​ $6,000 in recourse liabilities immediately preceding​ Kasi's contributions. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses.​ Kasi's basis in the partnership interest is

Answer 1

The answer would be 12

Step-by-step explanation:

out of all this answer is correct.

Answer 2

$12,000

Step-by-step explanation:

Data given in the question

Contributed value of the machine = $30,000

Fair value of the machine = $40,000

Recourse liability = $24,000

Recourse liabilities immediately preceding​ Kasi's contributions = $6,000

So based on the above information, the kasi basis in the partnership account is

= $30,000 - $24,000 + $6,000

= $12,000

We simply applied the above formula to find out the kasi basis