Benson Contributed $60,000 of Cash in Exchange for a 50

question 6

Multiple Choice

Benson contributed $60,000 of cash in exchange for a 50% interest in the Palm partnership capital and profits.During the first year of partnership operations, Palm had net taxable income of $80,000.In addition Benson received a $20,000 distribution of cash from the partnership and he has a 50% share in the $26,000 of partnership recourse liabilities on the last day of the partnership year.Benson's adjusted basis (outside basis) for his partnership interest at year-end is:

• A)$166,000.
• B)$100,000.
• C)$93,000.
• D)$73,000.
• E)None of the above.

---

Definitions:

Environmental Cost Leadership

A business strategy focused on becoming the market leader by implementing cost-saving environmental practices, thus offering competitively priced goods or services while minimizing ecological impacts.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Sustainable Consumer Behavior

Consumer habits and practices that are conscious of environmental sustainability, aiming to minimize negative impact on the environment through thoughtful consumption.

Distrust

A feeling of doubt about the honesty, integrity, or reliability of a person or system, often leading to caution or avoidance.