Joan Bob Are Equal Partners In The Jb Partnership Formed On August 1 Of The Curr

Joan & Bob are equal partners in the JB Partnership, formed on August 1 of the current year. Bob contributed land that he inherited from his father three years ago. Bob’s father purchased the land in 1950 for $ 6,000. The land was worth $ 50,000. when Bob’s father died. The fair market value of the land was $ 75,000. at the date it was contributed to the partnership.Joan has significant experience developing real estate. After the partnership is formed, she will prepare a plan for developing the property and secure zoning approvals for the partnership. She would normally bill a third party $ 25,000. for these efforts. Joan will also contribute $ 50,000. of cash in exchange for her 50% interest in the partnership. The value of her 50% interest is $ 75,000.a.

 

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