Sophie Received a 30 Percent Interest in a General Partnership

question 15

Multiple Choice

Sophie received a 30 percent interest in a general partnership in exchange for property valued at $35,000 (adjusted basis = $25,000) and services valued at $5,000.In addition,the partnership assumed a $10,000 liability on the property.What is Sophie's basis in her partnership interest?

• A)$20,000
• B)$23,000
• C)$25,000
• D)$39,000
• E)None of the above

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Definitions:

Fibularis Longus

A muscle in the lateral compartment of the lower leg that everts and plantarflexes the foot.

Tibialis Anterior

A muscle in the front of the leg that helps in dorsiflexion and inversion of the foot.

Extensor Digitorum Longus

A muscle in the lower leg that helps to extend the toes and dorsiflex the foot.

Flexor Digitorum Longus

A muscle in the lower leg that helps in flexing the toes and plays a significant role in stabilizing the foot.