Gerald Received a One-Third Capital and Profit (Loss)interest in XYZ

question 107

Multiple Choice

Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP) . In exchange for this interest, Gerald contributed a building with an FMV of $30,000. His adjusted basis in the building was $15,000. In addition, the building was encumbered with a $9,000 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?

• A)$6,000
• B)$9,000
• C)$21,000
• D)$24,000

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Definitions:

Conscientiousness

A personality trait characterized by diligence, organization, dependability, and a strong sense of duty.

Authoritarianism

A political system characterized by strong central power and limited political freedoms.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Big Five Approach

a theory in psychology that identifies five main personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.