1a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership:   Basis Fair Market Value Harry:     Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally:     Equipment used in a business 200,000 150,000 Totals $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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1a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership:

 

Basis

Fair Market Value

Harry:

 

 

Cash

$ 30,000

$ 30,000

Land

100,000

120,000

Totals

$ 130,000

$ 150,000

Sally:

 

 

Equipment used in a business

200,000

150,000

Totals

$ 200,000

$ 150,000

How much gain or loss will Harry recognize on the contribution?

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