For a 30% Interest in Partnership Capital, Profits, and Losses

question 80

Multiple Choice

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000. The partnership assumes a $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Following the contribution, Carol has

• A)a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest.
• B)a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.
• C)a $34,000 basis in the partnership interest and no gain or loss.
• D)a $43,000 basis in the partnership interest and no gain or loss.

Comprehend the reasons for regulatory measures in markets, specifically in sectors with significant externalities or information asymmetry.

Uncover the rationale and economic impact of licensing in professions with high stakes for consumer welfare.

Recognize the role of public goods and the problem of underproduction in a free-market economy.

Identify the importance of externalities and their impact on market efficiency.

---

Definitions:

Recruitment Sources

The various channels or methods companies use to find potential candidates for employment, such as job boards, recruiting firms, or college career services.

Personnel Policies

Guidelines and rules established by an organization to govern and manage employment relationships and workplace procedures.

Characteristics Of The Recruiter

Qualities or features that define the individual or agency in charge of attracting and hiring candidates.

Due-Process Policies

Policies that formally lay out the steps an employee may take to appeal the employer's decision to terminate that employee.