Small Corp

question 3

Multiple Choice

Small Corp. and Big Corp. are equal partners in Medium Enterprises. The partnership has a net worth of $210,000, split 50/50 between the two corporations. Size Co. has been asked to join the partnership in a manner that will not have a potential tax consequence
To the existing partners. When the transaction is complete, all three partners will have an equal interest. To accomplish this structural change, Size Co. must

• A)contribute $105,000 to the partnership treasury.
• B)contribute $210,000 to the partnership treasury.
• C)pay $70,000 to each of the partners.
• D)pay $105,000 to each of the partners.

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Definitions:

False Beliefs

Incorrect assumptions or misunderstandings about the reality of a situation, often the result of incomplete or incorrect information.

Inside The Mind

A phrase exploring one's thoughts, feelings, and cognitive processes, giving insight into psychological functioning or consciousness.

False Belief Tasks

Cognitive exercises used primarily in developmental psychology to assess the understanding that others can hold beliefs about the world that are different from one's own.

Executive Function

Higher order cognitive processes that enable an individual to plan, organize, remember details, and manage time and space.