If a Personal-Use Asset Is Contributed to a Partnership for Business

question 34

Multiple Choice

If a personal-use asset is contributed to a partnership for business use,the partnership's basis in the asset is always:

• A)$0.
• B)The FMV of the asset at the date of contribution.
• C)The basis of the asset at the date of contribution.
• D)The lesser of the asset's FMV or basis at the date of contribution.

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Definitions:

Coup

A sudden, violent, and illegal seizure of government power, often executed by a small group within the existing state structures, such as the military or political elite.

Executive Authority

Refers to the part of government responsible for implementing laws and running the day-to-day affairs of a state, typically vested in a president, prime minister, or monarch.

Ottoman Empire

A historical empire founded at the end of the 13th century in northwest Anatolia, it expanded to include vast territories in Southeast Europe, Western Asia, and North Africa before its dissolution after World War I.

International Tensions

Strained relations between nations due to disputes, conflicts of interest, ideologies, or competition, which can sometimes lead to confrontation or war.