Cosmo contributed land with a fair market value of $332,500 and a tax basis of $138,000

a. Zero gain

b. Cosmo’s tax basis in his partnership interest is $55,200

Explanation:

a. According to the given data there is a Zero gain, therefore Cosmo will recognize $ 0 gain from the contribution.

b. In order to calculate Cosmo’s tax basis in his partnership interest we would have to make the following calculation:

Cosmo’s tax basis in his partnership interest=  tax basis to the Y Mountain partership×percentage of profits and capital interest in the partnership

Cosmo’s tax basis in his partnership interest=$138,000×40%

Cosmo’s tax basis in his partnership interest=$55,200

Cosmo’s tax basis in his partnership interest is $55,200

present value = $9320.06

Explanation:

given data

cash flow 1 year C1 = $500

cash flow 2 year C2 = $1000

pay 3 year C3  = $800

interest rates  r = 10 percent per year = 0.10

solution

we get here present value that is

present value =   ....................1

put here value and we will get

present value =  

present value = $9320.06