The personal service partnership of Allen, Baker & Carr had the following cash basis balance sheet at December 31, 2014:
Note payable: $60,000
Carr's adjusted basis per books: $14,000
Carr's market value : $154,000
Carr, an equal partner, sold his partnership interest to Dole, an outsider, for $154,000 cash on January 1, 2015. In addition, Dole assumed Carr's share of the partnership's liability.
What was the total amount realized by Carr on the sale of his partnership interest?
a. $174,000
b. $154,000
c. $140,000
d. $134,000
Answer: A
CPA Exam
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