Orcajada invested in a partnership a parcel of land which cost his father P200,000. The land had a market value of P300,000 when Orcajada inherited it three years ago. Currently, the land is independently appraised at P500,000. The partners agreed that the value of the land at P450,000. The land should be recorded in the accounts of the partnership at Orcajada invested in a partnership a parcel of land which cost his father P200,000.The land had market value of P300,000 when Orcajada inherited it three years ago.Currently, the land is independently appraised at P500,000 even though Orcjada insistedthat he “woudn’t take P900,000 for it.”The land should be recorded in the accounts ofthe partnership at a.P300,000 b.P900,000 c.P500,000 d.P200,000

Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners.Upon liquidation of the partnership, property will be distributed to the partners in accordance with their § 704(b) book capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600. a. Calculate the…

Taylor and Tanner formed a partnership.  Taylor contributed $50,000 in cash.  Tanner contributed land and buildings he purchased for $50,000 some time ago.  His tax basis in the property is now $30,000, although it was recently appraised for $70,000.  There is a $15,000 mortgage attached to the building that the partnership will assume.  What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000

Liam & Reagan Company is a partnership that has two partners, Liam and Reagan. At the beginning of the year, Liam's basis in the partnership is $40,000 while Reagan's basis is $70,000. During the year, Liam transfers a building to the partnership. The building has an adjusted basis to Liam of $350,000 and a fair market value of $450,000. There is a recourse mortgage attached to the building of $250,000 that the partnership assumes. Liam's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Reagan's profit-sharing ratio is 60% and her loss sharing ratio is 70%. What is Reagan's basis after this transaction?