Zoey Contributed Property with a Tax Basis of $25,000 and a Fair

question 42

Multiple Choice

Zoey contributed property with a tax basis of $25,000 and a fair market value of $60,000 to a newly formed partnership in exchange for a 40 percent interest.How much income must Zoey recognize as a result of the transaction?

• A)$60,000
• B)$35,000
• C)$25,000
• D)0

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Definitions:

Angiotensin II

Peptide derived from angiotensin I; stimulates vasoconstriction and aldosterone secretion; also called active angiotensin.

Blood Volume

The total volume of blood circulating within an individual's vascular system.

ADH Production

The synthesis and release of antidiuretic hormone, also known as vasopressin, primarily by the posterior pituitary gland, which helps regulate water balance in the body.

Hyperventilation

Rapid or deep breathing that leads to a decrease in carbon dioxide levels in the blood, potentially causing dizziness or tingling.