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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

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Answer:

Bernard's tax basis in his partnership interest is $1,200,000

Explanation:

According to the given data, we have the following information:

cash contributions=$600,000 and $200,000 respectively

partnership borrowed=$800,000

Therefore, in order to know what What is Bernard's tax basis in his partnership interest we have to make the following calculation:

=$600,000+($800,000×75%)

=$1,200,000

Bernard's tax basis in his partnership interest is $1,200,000

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