Question: gerald received a onethird capital and profit loss interest in...
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $17,000. His adjusted basis in the building was $8,500. In addition, the building was encumbered with a $5,100 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?
Multiple Choice $5,100. $13,600. $11,900. $3,400.