Kuda Exchanges Property with a FMV of $630,000 and an Adjusted

question 267

Multiple Choice

Kuda exchanges property with a FMV of $630,000 and an adjusted basis of $450,000 in exchange for a one- third interest in a partnership. The property is subject to a mortgage with a principal balance of $300,000 which the partnership assumes. As a result of Kuda joining the partnership, Alejandro, a pre- existing partner, now has a one- third interest in the partnership. Alejandro will adjust his basis to

• A) increase it by $100,000.
• B) increase it by $210,000.
• C) increase it by $150,000.
• D) decrease by $100,000.

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Definitions:

Denseness

In mathematics, it pertains to the property where every part of a given space is arbitrarily close to some element of a specific subset.

SPSS

A comprehensive software package used for statistical analysis, widely used in social science research for data management and analysis.

Fisher's LSD

A method developed by Ronald Fisher for performing multiple comparisons among means, typically used after an ANOVA to identify differences between pairs of means.

Type I Error

The incorrect rejection of a true null hypothesis in statistical hypothesis testing, also known as a "false positive."