The Fair Market Value of a Partnership Can Be Implied

question 17

Multiple Choice

The fair market value of a partnership can be implied by

• A)adding the incoming partner's market value of consideration to the book value of the existing partnership.
• B)the tax basis of the old partner's assets added to the incoming partner's consideration.
• C)The incoming partner's market value of consideration divided by the incoming partner's percentage share in profit and loss.
• D)The incoming partner's market value of consideration divided by the incoming partner's percentage ownership share in the new partnership.

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Definitions:

Analogies

In biology, structures possessed by different organisms that are superficially similar due to similar function but that do not share a common developmental pathway or structure.

Homologies

In biology, structures possessed by two different organisms that arise in similar fashion and pass through similar stages during embryonic development, although they may have different functions.

Polygenetic Inheritance

A pattern of inheritance involving multiple genes, contributing to the phenotype of an organism, often seen in traits such as height and skin color.

Gene Flow

The transfer of genetic variations from one population to another, leading to changes in the genetic composition of those populations.