Abby Contributed Property with a $80,000 Basis and Fair Market

question 9

Multiple Choice

Abby contributed property with a $80,000 basis and fair market value of $120,000 to the ABC Partnership in exchange for a 50% interest in partnership capital and profits.During the first year of partnership operations, ABC had net taxable income of $60,000 and tax-exempt income of $56,000.The partnership distributed $24,000 cash to Abby.Her share of partnership recourse liabilities on the last day of the partnership year was $32,000.Abby's adjusted basis (outside basis) for her partnership interest at year-end is:

• A)$110,000.
• B)$146,000.
• C)$144,000.
• D)$196,000.
• E)Some other amount.

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Definitions:

Continuity Theory

A psychological theory suggesting that individuals maintain a consistent pattern of behavior and personality throughout their life.

Discrimination Learning

The ability to differentiate between various stimuli or situations based on learned characteristics.

Generalization Gradient

The degree to which learned behavior is conducted in response to variations of the original conditioned stimulus, showing the relationship between similarity to the original stimulus and behavioral response.

Discrimination Training

A learning process in which an organism learns to respond differently to various stimuli that are not identical.