15 Bradford contributed cash of $25,000 and Land with an adjusted Basis of 545,000 and a Fair Market Value of $75,000 to an entity for a seventy-five percent (75) ownership interest in the entity. There is no debt on the Land. The entity was created three (3) years ago. If the entity is a Partnership, bradford has no Recognized Gain and an initial basis in her Partnership Interest of $70,000 False or True
15 Bradford contributed cash of $25,000 and Land with an adjusted Basis of 545,000 and a Fair Market Value of $75,000 to an entity for a seventy-five percent (75) ownership interest in the entity. There is no debt on the Land. The entity was created three (3) years ago. If the entity is a Partnership, bradford has no Recognized Gain and an initial basis in her Partnership Interest of $70,000
False or True
16 Savannah and Johnson form a business entity with Savannah contributing Cash of $70,000 and Johnson contributing and which has an Adjusted Basis of $60,000 and a Fair Market Value of $70,000. At the end of the first year of operations, the business entity has earned a profit of $30,000 and has outstanding liabilities of $40,000. If the entity is an S Corporation, Johnson's basis in her stock at the end of the first year is $85,000.
False True
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