n January 1 , Ryan and James decided to open a Peruvian chicken restaurant ( yum ! ) . Ryan contributed the building and land for the restaurant that had a fair market value of $ 160,000 and adjusted tax basis of $ 150,000 for a 50 percent profits interest and capital interest . Ryan had a $ 60,000 business loan . James contributed $ 50,000 of cash for a 50 percent profits interest and capital interest . The new partnership relieves Ryan by taking on the loan . Should the partnership fail to pay the loan , the creditor is only able to claim potential future profits of the company but cannot go after the personal assets of either partner . The company uses a calendar year tax period . In the above scenario , what are Ryan and James's initial outside tax bases in the partnership ? OI . O II . Ryan : $ 150,000 . James : $ 50,000 . Ryan : $ 90,000 . James : $ 50,000 . O III . None of t
On January 1 , Ryan and James decided to open a Peruvian chicken restaurant ( yum ! ) . Ryan contributed the building and land for the restaurant that had a fair market value of $ 160,000 and adjusted tax basis of $ 150,000 for a 50 percent profits interest and capital interest . Ryan had a $ 60,000 business loan . James contributed $ 50,000 of cash for a 50 percent profits interest and capital interest . The new
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