Emma Contributes Property Having a $24,000 FMV and a $15,000

question 82

Multiple Choice

Emma contributes property having a $24,000 FMV and a $15,000 adjusted basis and also renders legal services valued at $22,000 in exchange for a 30% interest in the capital and profits of the ABC partnership.The tax results to Emma will be

• A)no income is recognized and a partnership basis of $37,000.
• B)ordinary income of $22,000 and a partnership basis of $37,000.
• C)ordinary income of $22,000 and a partnership basis of $46,000.
• D)no income is recognized and a partnership basis of $46,000.

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Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, decision making, and personality traits.

Novel Sequences

Unfamiliar or new sequences or patterns that have not been previously encountered or learned.

Choreography

A structured sequence of movements or dance steps, often set to music.

Frontal Lobes

Regions of the brain involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.