Khalid Contributes Land (Fair Market Value of $700,000; Adjusted Basis

question 126

Multiple Choice

Khalid contributes land (fair market value of $700,000; adjusted basis of $200,000) and Dan contributes $700,000 cash to form Teal Partnership. Khalid and Dan each own a 50% interest. One year later, Teal sells the land for $800,000. How much gain is recognized by each partner?

• A)$600,000 to Khalid, $0 to Dan.
• B)$550,000 to Khalid, $50,000 to Dan.
• C)$300,000 to Khalid, $300,000 to Dan.
• D)$50,000 to Khalid, $50,000 to Dan.
• E)None of the above.

---

Definitions:

Objection

In sales, an objection is a concern or question raised by a potential customer that signals hesitance or resistance toward the product or service being offered.

Order

The request made by a customer to purchase goods or services from a business.

Money Objections

Refers to reservations or hesitations expressed by potential customers regarding the cost or expense of a product or service.

Economic Excuses

Reasonings or justifications based on economic reasons, often used to explain a refusal or avoidance of certain actions due to financial constraints.