Ask Question
6 August, 00:26

Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and adjusted basis of $350. The store had a profit of $60,000 at the end of the year. What is Jerry's partnership basis in the bookstore at the end of the year?

A - $23,000

B - $23,300

C - $23,350

D - $23,490

+4
Answers (1)
  1. 6 August, 00:49
    0
    The Jerry's partnership basis in the bookstore at the end of the year is $23,350.

    Explanation:

    Workings

    Contributed Capital = $ 8,000

    Add: Adjusted basis of cash register = $ 350

    Add: Share of Profit ($60000 X 25%) = $ 15,000

    Partnership basis at the end of the year = $ 23,350
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers