Bernard and Leon Formed a Partnership on January 1 with Cash

Bernard and Leon formed a partnership on January 1 with cash contributions of $600,000 and $200,000,respectively.The partners agree to share profits and losses in the ratio of their initial capital contributions.The partnership immediately borrowed $800,000.What is Bernard's tax basis in his partnership interest?

A) $1,200,000
B) $600,000
C) $800,000
D) $1,400,000

Correct Answer:

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