current year, Emma, Cody, and Sonia form Partnership X, a general partnership. Each contributes the...
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current year, Emma, Cody, and Sonia form Partnership X, a general partnership. Each contributes the following property in exchange for a 1//3 interest each: Emma contributes equipment held for more than one year with an adjusted basis of $10,000 and a fair market value of $50,000; Emma had deducted $20,000 of depreciation on the equipment prior to the contribution. Cody contributes inventory with an adjusted basis of $5,000 and a fair market value of $50,000. Sonia contributes land held for more than one year with an adjusted basis of $20,000, fair market value of $100,000, and subject to a nonrecourse debt of $50,000. Profits, losses, and excess nonrecourse liabilities are allocated equally among the partners. What are the tax consequences
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