B Contributes Her Business Property to AB Partnership

question 56

True/False

B contributes her business property to AB Partnership.This property has a market value of $2,000 and a basis to B of $1,500.The entity theory applies in this situation.Accordingly, the basis of the property to the partnership is $2,000, and B recognizes a $500 gain.

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Definitions:

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data taken from that population.