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

question 103

Multiple Choice

Daniel acquires a 30percent interest in the PPZ Partnership from Paolo, an existing partner, for $39,000 of cash. The PPZ Partnership has borrowed $10,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

• A)$39,000.
• B)$42,000.
• C)$46,000.
• D)$49,000.

---

Definitions:

Job Characteristics Model

A theory that proposes that certain job characteristics influence job outcomes through their impact on psychological states.

Challenging Role

A role that requires a high level of skills, effort, and responsibility, often pushing individuals out of their comfort zones.

Compensation Structure

The systematic layout of how employees are paid, including salaries, bonuses, commissions, and other forms of monetary rewards.

Enhanced Work Performance

Describes improvements in efficiency, productivity, and quality of work output.