Tim, Al, and Pat Contributed Assets to Form the Equal

question 17

Multiple Choice

Tim, Al, and Pat contributed assets to form the equal TAP Partnership. Tim contributed cash of $40,000 and land with a basis of $80,000 (fair market value of $60,000) . Al contributed cash of $60,000 and land with a basis of $50,000 (fair market value of $40,000) . Pat contributed cash of $60,000 and a fully depreciated property ($0 basis)
Valued at $40,000. Which of the following tax treatments is not correct?

• A) Tim's basis in his partnership interest is $120,000.
• B) Al realizes and recognizes a loss of $10,000.
• C) Pat realizes a gain of $40,000 but recognizes $0 gain.
• D) TAP has a basis of $80,000, $50,000, and $0 in the land and property (excluding cash) contributed by Tim, Al, and Pat, respectively.
• E) All of these are correct.

Explain Tajfel and Turner's minimal intergroup situation and its implications for group behavior.

Outline the principles of social identity theory and their impact on personal identification with a group.

Describe the role and types of relationships (e.g., communal, exchange) in social interaction.

Understand the psychological and social effects of stereotypes, including stereotype threat.

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Definitions:

CESA Contribution

Funds put into a Coverdell Education Savings Account (CESA) to finance a beneficiary's educational expenses.

AGI

Adjusted Gross Income is the gross income of an individual or entity minus specific deductions, used to calculate taxable income on U.S. federal income taxes.

SIMPLE Plan

A retirement savings plan available for small businesses and self-employed individuals, offering a simplified way to save for retirement.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.