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lizabeth, David and Ethan form a new partnership (EDE) to which Elizabeth and David each contribute...

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Accounting

lizabeth, David and Ethan form a new partnership (EDE) to whichElizabeth and David each contribute assets worth $50,000 and basisof $20,000, and Ethan contributes his technical services worth$50,000. The value of the services is based upon what Ethanregularly charges unrelated parties for similar services.Elizabeth, David and Ethan each receive in exchange a one-thirdinterest in the partnership. The transferors are tax-free to allthree partners. Question 5 options: 1) True. 2) False.

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Yes the statement given in the question is true The statement given in the question is true As the partners gave there investments in the form of assets and other partner gave technical services in the form of capital to the partnership firm Here the question is about the tax issues of the investment of property or assets by the    See Answer
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