Mark and Addison Formed a Partnership

question 145

Multiple Choice

Mark and Addison formed a partnership.Mark received a 25% interest in partnership capital and profits in exchange for land with a basis of $40,000 and a fair market value of $60,000.Addison received a 75% interest in partnership capital and profits in exchange for $180,000 of cash.Three years after the contribution date,the land contributed by Mark is sold by the partnership to a third party for $76,000.How much taxable gain will Mark recognize from the sale?

• A)$0
• B)$9,000
• C)$24,000
• D)$36,000

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Definitions:

Manipulative Conditioning

Refers to using operant conditioning techniques to manipulate behavior by controlling rewards and punishments.

Preferential Conditioning

A process in learning where an organism develops a preference or aversion to a stimulus based on its associated consequences.

Conditioned Compensatory Responses

Refers to the physiological and behavioral changes that occur as a reaction to anticipatory cues for a primary unconditioned stimulus, often seen in drug tolerance and addiction studies.

Unconditioned Compensatory Responses

Innate responses or reactions that occur as a direct result of a stimulus, not requiring prior learning or conditioning.