1. Jay contributes property with a fair market value of $33,200 and an adjusted basis...
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Accounting
1. Jay contributes property with a fair market value of $33,200 and an adjusted basis of $9,960 to a partnership in exchange for a 5 percent partnership interest.
If an amount is zero, enter "0".
a. Calculate the amount of gain recognized by Jay as a result of the transfer of the property to the partnership.
b. Calculate Jay's basis in his partnership interest immediately following the contribution to the partnership.
2. Walter receives cash of $25,600 and land with a fair market value of $102,400 (adjusted basis of $61,440) in a current distribution. His basis in his partnership is $21,760.
If an amount is zero, enter "0".
a. What amount of gain must Walter recognize as a result of the current distribution?
What is Walter's basis in the land received?
b. What amount of gain must the partnership recognize as a result of the distribution?
c. What is Walter's basis in his partnership interest immediately after the distribution?
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