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.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The outcome variable in an experiment or study whose changes are dependent on manipulations made to the independent variable(s).

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis—essentially, a false negative.

Null Hypothesis

A hypothesis that suggests there is no significant difference or relationship between specified groups or variables, serving as a default position until evidence suggests otherwise.