Cal Contributes Property Valued at $50,000 (Adjusted Basis = $30,000)

question 43

Multiple Choice

Cal contributes property valued at $50,000 (adjusted basis = $30,000) to a partnership in exchange for a partnership interest valued at $40,000 and $10,000 cash.What is Cal's recognized gain or loss on these transfers?

• A)0
• B)$4,000
• C)$10,000
• D)$20,000

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Definitions:

Candy Company

A business enterprise focused on the production and/or sale of candies and confectioneries.

Goodness-Of-Fit

A statistical test used to determine the extent to which observed data match the expected distribution under a specific model.

Flavour

The distinctive taste of a food or drink, perceived by the sense of taste and smell.

Political Party

An organized group of people with at least roughly similar political aims and opinions, seeking to influence public policy by getting its candidates elected to public office.