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.

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Definitions:

Time Allotted

The specific amount of time assigned or allocated for a particular task, event, or activity.

Audience Size

The number of people who are exposed to or consume a particular piece of content or media.

Inform

To provide or disclose information or knowledge about a subject or topic.

Persuade

The act of convincing someone to believe or do something, using evidence or logical reasoning.