K Owns 25 Percent of a Partnership

question 44

Multiple Choice

K owns 25 percent of a partnership.K's basis in the partnership was $12,000 before she received a current proportionate distribution of equipment with a basis of $14,000 and a liability against it of $6,000.How much is K's basis in the partnership after the distribution?

• A)$1,500
• B)$2,000
• C)$2,500
• D)$4,500
• E)$0

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Definitions:

Exchange Relationships

Social relationships based on reciprocal and equitable exchanges of resources or benefits between parties.

Communal Relationships

Communal relationships describe social connections where individuals focus on mutual care and concerns rather than personal gains, emphasizing the welfare of the group or relationship over individual benefits.

Keep Track

The action of monitoring or staying informed about the progress or status of something.

Wedding Guests

Individuals invited to attend a wedding ceremony and subsequent celebrations.