For a 30% Interest in Partnership Capital, Profits, and Losses

question 80

Multiple Choice

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000. The partnership assumes a $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Following the contribution, Carol has

• A)a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest.
• B)a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.
• C)a $34,000 basis in the partnership interest and no gain or loss.
• D)a $43,000 basis in the partnership interest and no gain or loss.

Understand the tools and methods used for diagnosing and assessing mental health.

Distinguish between different types of anxiety and mood disorders.

Comprehend the significance of major mental health terms and abbreviations.

Gather insights into the interpersonal dynamics within therapeutic contexts.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Average Operating Assets

The average value of the assets used in the normal course of business to generate operating income, often calculated over a period to assess performance.

Controllable Fixed Costs

Costs that management has the power to influence or change in the short term.

Budgetary Control

The process of monitoring financial budgets by comparing actual performance with the budgeted amounts to manage financial resources effectively.