On April 5,2019,Joan Contributes Business Equipment (She Had Purchased on October

question 58

Multiple Choice

On April 5,2019,Joan contributes business equipment (she had purchased on October 24,2017) having a $45,000 FMV and a $40,000 adjusted basis to the EJK Partnership in exchange for a 25% interest in the capital and profits.The basis of the property and the date the holding period begins for the partnership is

• A) \[\begin{array} {| l | l | }
• \hline \text { Basis } & \text { Holding Period Begins } \\
• \hline \$ 40,000 & \text { October } 24,2017 \\
• \hline
• \end{array}\]
• B) \[\begin{array} {| l | l |}
• \hline\text { Basis } & \text { Holding Period Begins } \\
• \hline \$ 40,000 & \text { April 5, 2019 }\\\hline
• \end{array}\]
• C) \[\begin{array} { |l | l | }
• \hline \text { Basis } & \text { Holding Period Begins } \\
• \hline \$ 45,000 & \text { October } 24,2017 \\
• \hline
• \end{array}\]
• D) \[\begin{array} {| l | l | }
• \hline \text { Basis } & \text { Holding Period Begins } \\
• \hline \$ 45,000 & \text { April 5, 2019 } \\
• \hline
• \end{array}\]

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