QR partnership has the following assets and liabilities The

QR partnership has the following assets and liabilities. The book basis and tax basis are the same. Machine $10,000 basis and FMV or $13000 and a nonrecourse note of $15,000 FMV the same. . Building with $80,000 basis and FMV of $100,000 with recourse note of $90,000 with FMV the same. . What is the amount of the partnership\'s minimum gain? A $2000 B $3000 C $5000 or D $15000

Solution

mimimum gain was the difference between non recourse debt and the basis

so machine=$10000 basis

Non recourse= $15000

so $15000-$10000=$5000

same with building

building=$80000 basis

Recourse note= $90000

so $90000-$80000=$10000

so total partnershim minimum is $5000+$10000=$15000 answer is D