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Mr. Williams recognizes no gain, and the basis of his interest is $11,000. The accounts payable of cash-basis contributors are not considered liabilities for purposes of determining a partner's basis for a partnership interest. Consequently, Mr. Williams is not deemed to receive a $15,000 distribution because of the contribution of the $30,000 accounts payable to a partnership in which he has a 50% interest. The basis of his partnership interest equals the total $11,000 basis of property he contributes: $6,000 of cash, zero-basis accounts receivable, and $5,000 basis of equipment.