Elijah Contributes Securities with a $90,000 FMV (Purchased in 2008

question 98

Essay

Elijah contributes securities with a $90,000 FMV (purchased in 2008 at a cost of $50,000)to become a one-third partner in the EJK Partnership on January 1 of the current year. The securities are sold on December 15 of the current year for $105,000. How much of the partnership's capital gain from the sale of these securities should be allocated to Elijah?

---

Definitions:

Paralegal Organizations

Professional associations that support the development, education, and networking of paralegals/legal assistants, often providing resources and advocacy for the profession.

ABA

The American Bar Association, a professional organization for lawyers in the United States that sets academic and ethical standards for the legal profession.

Indirectly Regulated

Subject to oversight or control by laws or rules not directly focused on the subject matter but still affecting it.

Paralegal Organizations

Professional associations that provide support, education, and advocacy for paralegals and legal assistants.