On January 1 of the Current Year, Anna and Jason

question 49

Multiple Choice

On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (adjusted basis of $100,000; fair market value of $150,000) in exchange for her interest in the partnership. Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation?

• A)Jason recognizes a $20,000 gain on his property transfer.
• B)Jason has a $200,000 tax basis for his partnership interest.
• C)Anna has a $150,000 tax basis for her partnership interest.
• D)The partnership has a $150,000 adjusted basis in the land contributed by Anna.
• E)None of the statements is true.

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Definitions:

Approved Charges

The amounts pre-determined by insurance providers as the maximum they will pay for a covered service or procedure.

X12 837

A standard format for electronically transmitting healthcare claim information from healthcare providers to payers, such as insurance companies.

Electronic Claim

A request for payment for healthcare services that is submitted electronically to a health insurance provider.

Coordination of Benefits

A legal principle that limits payment by insurance companies to 100% of the cost of covered expenses.