Xavier and Santos formed a 50/50 partnership. Xavier provided equipment which had a fair market...
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Xavier and Santos formed a 50/50 partnership. Xavier provided equipment which had a fair market value of $240,000, adjusted basis $105,000, and a nonrecourse financing note with a balance of $60,000. Santos contributed $5,000 cash and a building with a fair market value of $175,000 and adjusted basis of $50,000. After these transactions, Santos at-risk basis in the partnership is:
a. $50,000.
b. $60,000.
c. $80,000.
d. $85,000.
e. $100,000
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