Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In...
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Accounting
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $26,000. His adjusted basis in the building was $13,000. In addition, the building was encumbered with a $7,800 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?
Multiple Choice
$5,200.
$7,800.
$18,200.
$20,800.
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