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18.Barbara and Bill formed an equal partnership, B&B, a general partnership, on January 1, 2014. Barbara contributed $100,000 in exchange for her one-half interest. Bill contributed land worth $100,000 that had an adjusted basis to him of $30,000 in exchange for his one-half interest. Which of the following statements is accurate with respect to this transaction?a. None of Barbara, Bill, or B&B recognized any gain or loss.b. Bill recognized gain of $70,000 , but Barbara and B&B did not recognize any gain or loss.c. B&B recognized gain of $70,000 , but Barbara and Bill did not recognize any gain or loss.d. Bill and B&B each recognized $70,000 of gain, but Barbara did not recognize any gain or loss.19.Which of the following decreases a partner’s basis in the partner’s partnership interest?20.Jim, one of two equal partners of the JJ Partnership, a general partnership, contributed business property with an adjusted basis to him of $15,000 and a fair market value of $10,000 to the JJ Partnership. Jim’s capital account was credited with $10,000. The property later was sold for $12,000. As a result of this sale, how much gain or loss must Jim report on his personal income tax return?
21. Ronald and Roy formed an equal partnership, R&R Partnership, a general partnership, on January 1, 2011. Ronald contributed $100,000 in exchange for his one-half interest in R&R partnership. Roy contributed land worth $100,000 and with an adjusted basis to Roy of $30,000 in exchange for his one-half interest in the partnership. Roy is a real estate developer, and at the time of the contribution, the land was inventory in his hands. The land is a capital asset in the hands of R&R Partnership. If R&R Partnership sells the land in 2017 to an unrelated taxpayer for $180,000,how much gain will be recognized by R&R Partnership and what will be the character of the gain?22. Glenda received a proportionate nonliquidating distribution from the EFG Partnership. The distribution consisted of $10,000 cash and property with an adjusted basis to the partnership of $34,000 and afair market value of $42,000. Immediately before the distribution, Glenda’s adjusted basis in her partnership interest was $60,000. How much is Glenda’s basis in the noncash property distributed to her?a.$10,000b.$34,000c.$42,000d.$50,000