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Molly transfers land with an adjusted basis of $28,000 and a fair market value of $65,000 to the Sand Partnership for a 30% ownership interest. The land is encumbered by a mortgage of $18,000, which the partnership assumes. Her basis for her ownership interest is $10,000 $28,000 - $18,000).
Mutually Exclusive
Events or conditions that cannot occur at the same time, highlighting a clear distinction without overlap.
Addition Rule
A principle in probability and statistics that calculates the likelihood of any of multiple mutually exclusive events occurring.
Probabilities
The probability of an event happening, expressed numerically between 0 and 1, indicating the event's chance.
Null Hypothesis
A baseline assumption that suggests no significant effect or difference exists, serving as the initial point for conducting tests on statistical significance.
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