Patrick purchases one third interest in the PPP partnership from an existing partner for 600,000....
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Accounting
Patrick purchases one third interest in the PPP partnership from an existing partner for 600,000. The partnership has assets with a value of 1.2m. PPP has a 754 election in effect. What is the amount of the basis adjustment?
a. 600,000 increase in the basis of partnership assets
b. 0
c. 200,000 increase in Patricks share of outside basis in the partnership assets
d. 200,000 increase in Patricks inside basis in the partnership assets to FMV on the partnerships books as goodwill or mark to market adjustment.
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