Accounting Assignment | Custom Assignment Help
Peter contributes property to a partnership in exchange for a 30% interest in the partnership. The contributed property consists of real estate he owns worth $500,000. Peter has an adjusted basis in the real estate of $200,000 and the real estate is subject to a mortgage of $100,000. What is Peter’s basis in his partnership interest is a. $100,000.b. $130,000.c. $300,000.d. $70,000
My answer is (a) 100,000= Peter basis 500,000-300,000=200,000- 100,000. Am I on the correct path and if not could you explain my error?