Sharon Contributed Property to the Newly Formed QRST Partnership

question 190

Multiple Choice

Sharon contributed property to the newly formed QRST Partnership. The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Sharon is treated as a general partner. She is allocated 30% of QRST's profits and 20% of QRST's losses. Sharon's basis in the partnership interest after the formation transaction is:

• A) $28,000.
• B) $37,000.
• C) $88,000.
• D) $118,000.
• E) $127,000.

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Definitions:

Demand Characteristics

Aspects of an experimental setting that lead participants to guess the purpose of the study and adjust their behavior to what they believe the experiment expects.

Experimenter-Expectancy Effect

A bias in research outcomes where the researcher's expectations inadvertently influence the participants' performance.

Double-Blind Design

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment.

External Validity

The extent to which the results of a study can be generalized or extended to other contexts or populations.