Sue and Andrew Form SA General Partnership

question 25

Multiple Choice

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $28,000 of cash and land with an FMV of $73,000. Her basis in the land is $38,000. Andrew contributes equipment with an FMV of $30,000 and a building with an FMV of $51,000. His basis in the equipment is $26,000, and his basis in the building is $38,000. 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:

Macroeconomic Environments

The broad economic conditions and contexts that affect the economy as a whole, including inflation rates, growth rates, employment levels, and government policies.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from its mean.

HMO

Health Maintenance Organization, a medical insurance group that provides health services for a fixed annual fee.

Expected Revenue

The anticipated amount of money a business expects to receive over a certain period, accounting for factors like price and demand for its goods or services.