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:

Innovation Process

A sequence of activities that begins with the generation of a new idea and culminates in the successful implementation of a new product, service, or method.

Experimenting

The act of conducting tests and trials to discover, validate, or test hypotheses, theories, or products.

Innovation Process

The systematic development and implementation of new ideas, products, services, or processes, aiming to enhance competitive advantage and efficiency.

Assessing

The process of evaluating or estimating the nature, ability, or quality of something or someone.