On January 5, 2014, Mike Acquires a 50% Interest in Precision

question 50

Multiple Choice

On January 5, 2014, Mike acquires a 50% interest in Precision Tools Partnership by contributing property with an adjusted basis of $20,000 and a fair market value of $24,000, subject to a mortgage of $16,000. What is Mike's basis in Precision Tools Partnership as of January 5, 2014?

• A) $- 0 -
• B) $10,000
• C) $12,000
• D) $16,000
• E) $20,000

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Definitions:

Serial Position Effect

A psychological phenomenon where an individual is more likely to remember the first and last items in a series.

Episodic Memory

A category of long-term memory that involves the recollection of specific events, situations, and experiences.

Semantic Memory

A category of persistent memory that involves the ability to memorize words, ideas, or numbers, indispensable for the mastery and implementation of language.

General Knowledge

Broad, useful information and facts about a wide range of topics rather than detailed knowledge in a specific area.