A Taxpayer Contributes Property with an Adjusted Basis of $35,000

question 10

Short Answer

A taxpayer contributes property with an adjusted basis of $35,000 and a fair market value of $50,000 to her business entity.If the entity is a partnership and the transaction qualifies under § 721, the partnership's basis for the asset and the partner's basis for her partnership interest are: $\begin{array}{lll}&\text { Asset Basis }&\text { Interest Basis }\\\text { a. } & \$ 35,000 & \$ 50,000 \\\text { b. } & \$ 50,000 & \$ 35,000 \\\text { c. } & \$ 35,000 & \$ 35,000 \\\text { d. } & \$ 50,000 & \$ 50,000\\\text { e. } &\text { None of the above. }\end{array}$

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Definitions:

Tay-Sachs Disease

A genetic disorder characterized by the absence of an enzyme that helps break down fatty substances in the brain, leading to severe neurological impairment and early death.

Autosomal Recessive Disorder

An autosomal recessive disorder is a genetic condition that occurs only when an individual inherits two copies of an abnormal gene, one from each parent.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Genotype

The genetic makeup of an organism, consisting of all the genes and alleles present in its DNA.