The partnership obtains a $50,000 nonrecourse mortgage loan on the land. How much is this general partner’s basis in the partnership after the contribution and loan?

An individual received a 70% capital interest in a general partnership by contributing the following:

Investment land purchased 10 years ago for $40,000 and valued at $60,000

A personal (nonbusiness) truck purchased nine months ago for $12,000 and valued at $10,000

The partnership obtains a $50,000 nonrecourse mortgage loan on the land. How much is this general partner’s basis in the partnership after the contribution and loan?

$85,000

$87,000

$100,000

$102,000

 

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