Question :
Annie, Carla and Betty formed the ABC partnership. They contributed the subsequent assets.
Annie contributed cash of $20000 and services valued at $60000.
Betty contributed land with a basis of $50000 and FMV of $105000. Attached to the land is a mortgage of $40000 considering by the partnership. Betty received cash of $5000.
Carla contributed inventory with a basis of $10000 and FMV of $20000. She also contributed a building with a basis of $30000 and a FMV of $60000. Attached to the building is a mortgage of $20000 considered by the partnership.
Annie owns 40 percent of the partnership and Betty and Carla each own 30% of the partnership.
For each partner answer the subsequent;
How much is recognized profit?
How much is each partner's basis in the partnership?
What is the partnership's basis in the assets contributed?