For a 20% Interest in Partnership Capital, Profits, and Losses

question 75

Multiple Choice

For a 20% interest in partnership capital, profits, and losses, Kasi contributes a machine having a basis of $30,000 and an FMV of $40,000. The partnership also assumes a $24,000 recourse liability secured by the machine. The partnership has $6,000 in recourse liabilities immediately preceding Kasi's contributions. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Kasi's basis in the partnership interest is

• A)$10,800.
• B)$12,000.
• C)$13,200.
• D)$30,000.

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Definitions:

Researcher Reactivity

The influence that the presence or perceived characteristics of a researcher can have on the behavior of subjects being studied.

Social Interpretations

The process of making sense of social behaviors, symbols, and institutions through the lens of cultural and societal norms and values.

Full-channel Communication

communication that utilizes all available modes or pathways for conveying information, including verbal, non-verbal, written, and digital.

Asynchronous Environments

Digital platforms where interactions do not require participants to be online at the same time, allowing for delayed responses.