When inventory that is contributed to the partnership in exchange for a

When inventory that is contributed to the partnership

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58. When inventory that is contributed to the partnership in exchange for a partnership interest is eventually sold: a. any gain or loss the partnership recognizes is always ordinary income or loss.b. any gain or loss the partnership recognizes is ordinary income or loss if the inventory is sold within five yearsof when it is contributed.c. any gain or loss the partnership recognizes is determined based on the use of the property by thepartnership.d. any gain or loss the partnership recognizes is ordinary income or loss to the extent of the contributingpartner’s built-in gain or loss in the property at the time of the contribution. 59. Which of the following do not increase a partner’s basis in the partnership interest? 60. Which of the following do not decrease a partner’s basis in the partnership interest? 61. Rachael and Ray form an equal partnership, R&R, on January 1, 20X1. Rachael contributes $100,000 inexchange for her one-half interest; Ray contributes land worth $100,000. Ray’s adjusted basis in the land is$30,000. Which of the following statements is accurate with respect to this exchange?
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62. At the beginning of 20X3, Margaret’s tax basis in her 30 percent interest in MP partnership is $3,000. During20X3, Margaret does not make any additional contributions to MP and her share of MP liabilities does notchange. During 20X3, MP distributes $5,000 to Margaret and reports the following items of partnership income,deduction, gain and loss.Taxable income $15,000Tax-exempt interest 6,000Section 1231 loss (10,000)Margaret’s tax basis in MP at the end of 20X3 equals: a. $0.b. $1,300.c. $9,000.d. $2,700.
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