Sue and Andrew Form SA General Partnership

question 124

Multiple Choice

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $10,000 of cash and land with an FMV of $55,000. Her basis in the land is $20,000. Andrew contributes equipment with an FMV of $12,000 and a building with an FMV of $33,000. His basis in the equipment is $8,000, and his basis in the building is $20,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

• A)$0
• B)$4,000
• C)$48,000
• D)$52,000

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Definitions:

Severity Of Initiation

The degree of difficulty or discomfort associated with the process of becoming a member of a group, which can affect individuals' valuation of the group.

Cohesive Combat Groups

Military units that exhibit a high level of unity and teamwork, enhancing their effectiveness in combat situations.

Buffer

A protective barrier or cushioning measure that reduces the impact of negative effects or forces.

Combat Fatigue

A psychological condition experienced by soldiers or combatants due to the stress, fear, and exertion of battle, also known as battle fatigue or shell shock.