Daniel Acquires a 30percent Interest in the PPZ Partnership from Paolo

question 95

Multiple Choice

Daniel acquires a 30percent interest in the PPZ Partnership from Paolo, an existing partner, for $39,500 of cash. The PPZ Partnership has borrowed $10,500 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

• A)$39,500.
• B)$42,650.
• C)$46,850.
• D)$50,000.

---

Definitions:

Flange Dimension

The specific measurement related to the size, thickness, or diameter of a flange, which is a projecting flat rim or collar used for attachment.

Seam Weld

A welding technique used to join two pieces of metal together along a continuous line by heating with an electric arc, laser, or other methods.

Weld Symbol

A symbolic representation used in technical drawings to identify the type, location, dimension, and other details of a weld.

Plug Weld

A type of weld used to fill a hole in one component that is to be joined to another component, securing them together.