Pasha and Kris formed PK partnership on January 1 of the current year. Pasha contributed $10,000 cash. Kris contributed property with a FMV of $90,000 and a basis of $35,000. Pasha has a 10% interest in the partnership and Kris has a 90% interest. At the end of the year, PK had the following: Ordinary income $25,000 Capital loss on sale of investment 800 Tax-exempt interest income 200 Non-deductible life insurance premiums paid on partners 500 Also, PK has the following liabilities as of the end of the year: Recourse loan $ 10,000 Nonrecourse loan 5,000 a. What is Pasha's basis in the partnership as of December 31?
Paper#6259 | Written in 18-Jul-2015Price : $25