Hunter Contributes Property Having a $75,000 FMV and a $65,000

question 1132

Multiple Choice

Hunter contributes property having a $75,000 FMV and a $65,000 adjusted basis which is subject to a $36,000 mortgage in exchange for a one- fourth interest in the ABC Partnership. The partnership owes no other debts, but does assume this mortgage. Profits and losses are shared equally and each partner has a one- fourth interest in partnership capital. Hunter's basis in the partnership is

• A) $48,000.
• B) $74,000.
• C) $38,000.
• D) $84,000.

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Definitions:

Charges

Fees or financial obligations imposed for services rendered, penalties, or cost of borrowing.

White-collar Crimes

Non-violent criminal offenses, usually committed in commercial situations for financial gain.

Nonviolent

Pertaining to actions or methods not involving violence, often emphasized in the context of protests or conflict resolution.

Criminally Liable

The state of being legally responsible for committing a crime or criminal act.