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.

Recognize the significance of attachment and temperament in early childhood development.

Identify stages and theories of cognitive development across the lifespan.

Understand the role of parenting styles and their impact on child development.

Conceptualize the biological aspects of prenatal development and the influence of teratogens.

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Definitions:

Contribution Margin

The amount by which the sales price of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Net Income Target

A net income target is a predefined earnings figure that a company aims to achieve within a specific time frame.

Required Sales

The amount of sales a company needs to achieve in order to cover its costs and generate a desired level of profit.