Alice Contributes Equipment (Fair Market Value of $82,000; Adjusted Basis

question 4

Multiple Choice

Alice contributes equipment (fair market value of $82,000; adjusted basis of $20,000) , subject to a $14,000 liability, to form Orange Partnership, a general partnership. Mary contributes $68,000 cash. Alice and Mary share equally in partnership profits and losses. What is Alice's and Mary's basis for their partnership interests?

• A)$6,000 to Alice, $68,000 to Mary.
• B)$6,000 to Alice, $75,000 to Mary.
• C)$13,000 to Alice, $75,000 to Mary.
• D)$20,000 to Alice, $68,000 to Mary.
• E)None of the above.

---

Definitions:

Sensory Register

The part of the memory system that processes sensory information from the environment, holding it for a very short period.

Saccadic Eye Movements

Rapid, ballistic movements of the eyes that abruptly change the point of fixation from one location to another.

Visual Sensations

Experiences derived from the stimulation of the eye's photoreceptors by light, leading to the perception of sight.

Eidetic Imagery

The rare ability to recall images, sounds, or objects in memory with extreme precision and vividness, often referred to as photographic memory.