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

question 107

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 $30,000. His adjusted basis in the building was $15,000. In addition, the building was encumbered with a $9,000 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?

• A)$6,000
• B)$9,000
• C)$21,000
• D)$24,000

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Definitions:

Place Theory

A theory in hearing that suggests different areas of the basilar membrane respond to different frequencies, helping to identify the pitch of sounds.

Gate-control Theory

A theory suggesting that the spinal cord contains a neurological "gate" that controls the transmission of pain signals to the brain, influenced by psychological factors.

Pain Perception

The subjective interpretation and individual experience of pain, which can be influenced by various physical, emotional, and psychological factors.

Endorphins

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