Gerald Received a One-Third Capital and Profit (Loss)interest in XYZ

question 75

Multiple Choice

Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP) . In exchange for this interest, Gerald contributed a building with an FMV of $27,000. His adjusted basis in the building was $13,500. In addition, the building was encumbered with a $8,100 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?

• A)$5,400
• B)$8,100
• C)$18,900
• D)$21,600

Understand the relationship between organizational size and its structural tendencies (centralization, formalization, spans of control).

Analyze the impact of organizational structure on decision-making processes.

Distinguish between the theoretical perspectives of classical and human relations theorists on organizational structures.

Recognize the role of standardization in shaping organizational spans of control.

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Definitions:

Marketable Securities Portfolio

A collection of liquid financial instruments that can be quickly converted into cash, held by an individual or entity.

Treasury Bills

Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks, issued at a discount to face value.

Maturity Risk

The danger that an investment’s value will change due to a change in the absolute level of interest rates, typically affecting fixed-income securities as they approach maturity.

Marketable Securities Portfolio

A collection of liquid securities that a company holds, which can easily be converted into cash.