Choice "C" is correct. The basis for Eng's interest in the partnership is $75,000 computed as follows:
| |
|---|
| Cash | $ 50,000 |
| Adjusted basis of eqpt. | 25,000 |
| Total partnership interest basis | $ 75,000 |
Rule: In general, a partner's basis in his/her partnership interest will be the amount of cash contributed plus the adjusted basis of any property contributed in exchange for the interest.Choices "a", "b", and "d" are incorrect, per the above rule.
