Edgar's tax basis in his one-third partnership interest is $30,000, consisting of his $20,000 net capital investment in the partnership, plus his...
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40. Edgar’s tax basis in his one-third partnership interest is $30,000, consisting of his $20,000 net capital investment in the partnership, plus his

$10,000 share of partnership liabilities. In complete liquidation of this interest, Edgar receives a distribution of real property with a tax basis of $28,000 and a fair market value of $50,000. The property is encumbered by a$15,000 mortgage for which Edgar assumes responsibility. The partnership has no hot assets. What will be Edgar’s tax basis in the real property?a. $28,000b. $30,000c. $50,000d. $35,000e. none of the above
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Subject: Accounting, Business

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