Leslie Contributes a Building Worth $88,000, with an Adjusted Basis

question 5

Multiple Choice

Leslie contributes a building worth $88,000, with an adjusted basis of $40,000, to a partnership in exchange for a 50 percent interest in the partnership's capital and profits. What is the amount of Leslie's basis in her partnership interest immediately after the contribution?

• A)$20,000
• B)$40,000
• C)$44,000
• D)$88,000
• E)None of these

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Definitions:

Anticipates Consequences

The act of foreseeing or predicting the outcomes or results of a particular action or decision.

Manager

An individual responsible for controlling or administering an organization or group of staff.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Core Critical Thinking Skills

Fundamental abilities in critical thinking, such as analysis, evaluation, inference, explanation, and self-regulation.