Yong Contributes a Machine Having an Adjusted Basis of $20,000

question 53

Multiple Choice

Yong contributes a machine having an adjusted basis of $20,000 and an FMV of $25,000 for a 10% partnership interest. Yong had taken $10,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Yong must recognize

• A)no gain or loss.
• B)a $5,000 Sec. 1245 gain.
• C)a $5,000 capital gain.
• D)$10,000 ordinary income.

Understand the basis of payment under standard hour plans.

Recognize the importance of managerial willingness in the success of incentive plans.

Grasp the prevalence and rationale behind financial incentives for salespeople.

Analyze the effectiveness and challenges of various incentive systems.

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Definitions:

Company Income Statement

A financial report that shows a company's revenues, expenses, and profit over a certain period of time.

Operations Management

The field of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Employment Agencies

Employment agencies are organizations that match employers looking to hire with individuals seeking employment, facilitating job placements across various industries.

Professional Organizations

Groups or associations that are formed to advance a specific profession and to serve the interests of its members.