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b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?

b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: Таx Basis FMV Assets $ 96,300 192,600 $ 288,900 $ 96,300 452,700 Cash Land Totals $ 549,000 Liabilities and capital Capital-Amy Capital-Brittany Сapital-Ben $ 96,300 $ 96,300 $ 96,300 $ 288,900 Totals (Leave no answer blank. Enter zero if applicable.) b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis? Amount Basis in partnership interest Inside basis
Transcribed Image Text:Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: Таx Basis FMV Assets $ 96,300 192,600 $ 288,900 $ 96,300 452,700 Cash Land Totals $ 549,000 Liabilities and capital Capital-Amy Capital-Brittany Сapital-Ben $ 96,300 $ 96,300 $ 96,300 $ 288,900 Totals (Leave no answer blank. Enter zero if applicable.) b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis? Amount Basis in partnership interest Inside basis
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