At the Beginning of the Year,Leilani Contributes Property to a Partnership

question 7

Multiple Choice

At the beginning of the year,Leilani contributes property to a partnership in exchange for a 20 percent partnership interest.The property contributed has a fair market value of $60,000 and a basis of $40,000 on the date of the contribution to the partnership.In addition,Leilani receives a 10 percent partnership interest,valued at $30,000,in exchange for services rendered to the partnership in the prior year.The partnership earned $90,000 during the year.What is Leilani's basis in her partnership interest at the beginning of the year and at the end of the year?

• A)$40,000 and $70,000
• B)$90,000 and 117,000
• C)$70,000 and $88,000
• D)$70,000 and $97,000
• E)$40,000 and $97,000

Comprehend how public saving (or lack thereof) influences national saving and the broader economy.

Interpret graphical models in the context of the open-economy macroeconomic model to predict changes in the economy due to various policy actions.

Explain the relationship between national saving, domestic investment, net capital outflow, and their interaction within an open economy.

Understand how government budget deficits impact the open economy, including effects on real interest rates, domestic investment, and trade balance.