Rocky and Ray form an equal partnership, R&R on January X Rocky contributes $ in exchange for his onehalf interest; Ray contributes land worth $ which is subject to a $ debt, which R&R assumes. Ray's adjusted basis in the land is $
How much gainloss does Ray recognize? Make sure to show all your work concerning the tax treatment of the debt.
What is his basis in R&R
Wilbur owns percent and Lawrence owns percent of the profits and losses of the WL partnership. On January X the basis in their respective partnership interests is $ and $ During WL reports taxable ordinary income of $ and has the following separately stated items: qualified dividend income of $; taxable interest income of $; charitable contributions of $; and Sec. expense of $ During the year, partnership liabilities decreased by $ and there were no distributions made to either partner assume liabilities are allocated based on profit and loss sharing ratios On December X what is the basis of each partner's interest in WL Show your work.
Wilbur
Lawrence
Tax basis at the end of the year
