Binita Contributed Property with a Basis of $40,000 and a Value

question 73

Multiple Choice

Binita contributed property with a basis of $40,000 and a value of $50,000 to the BE Partnership in exchange for a 20% interest in partnership capital and profits. During the first year of partnership operations, BE had net taxable income of $30,000 and tax-exempt interest income of $10,000. The partnership distributed $10,000 cash to Binita. Her adjusted basis (outside basis) for her partnership interest at year-end is:

• A) $36,000.
• B) $38,000.
• C) $60,000.
• D) $70,000.
• E) $80,000.

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Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and sensory processing.

Genetic Link

A connection between certain genes and specific traits or diseases.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of color.

Visual Acuity

The clarity or sharpness of vision, often measured as the ability to discern letters or numbers at a given distance.