David Contributes Investment Land with a Basis of $24,000 and an FMV

question 40

Multiple Choice

David contributes investment land with a basis of $24,000 and an FMV of $40,000 to a partnership for a 10% interest in partnership capital, profits, and losses. The land is subject to a $30,000 recourse liability, which is assumed by the partnership. The partnership has other recourse liabilities of $18,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. David must recognize a

• A) $1,200 capital loss.
• B) $1,200 capital gain.
• C) $3,000 capital loss.
• D) $3,000 capital gain.

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Definitions:

Pharmacological Treatments

Medical treatments that utilize drugs to alleviate symptoms, treat, or cure diseases.

Cognitive-Behavioural Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors by combining cognitive and behavioral therapy techniques.

Delirium

An acute neuropsychiatric condition characterized by confusion, disturbed consciousness, and altered cognition, often with a fluctuating course.

Neurocognitive Disorder

A category of conditions that affect cognitive functions such as memory, problem-solving, and attention, usually as a result of brain damage or disease.