Question 4 3 pts Adam and Barbara formed a partnership to construct an apartment building....
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Question 4 3 pts Adam and Barbara formed a partnership to construct an apartment building. Adam contributed $500,000 cash for his 50 percent interest in the partnership, while Barbara contributed land ($500,000 FMV and $250,000 basis) in exchange for her 50 percent interest in the partnership. Immediately after its formation, the partnership borrowed $600,000 from a local bank to begin construction. The partnerships assets will secure the loan. Compute each partner's initial basis in their partnership interest, assuming Adam and Barbara are both general partners. O Adam's initial basis is $800,000; Barbara's initial basis is $550,000. O O Adam's initial basis is $800,000; Barbara's initial basis is $800,000. Adam's initial basis is $500,000; Barbara's initial basis is $500,000. O Adam's initial basis is $500,000; Barbara's initial basis is $250,000.
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