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.

---

Definitions:

Predict

To state or estimate that a specified event will happen in the future or will be a consequence of something.

Rescorla's Theory

Rescorla's theory pertains to classical conditioning and suggests that the strength of the conditioned response depends on the predictability of the stimulus association.

Classical Conditioning

A pedagogical strategy that involves pairing two stimuli together repeatedly; a reaction, once caused by the second stimulus, eventually is caused by the first stimulus only.

Cognitive Perspective

The Cognitive Perspective is a psychological approach that emphasizes mental processes, such as perception, memory, and problem-solving, as fundamental to understanding behavior.