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:

Followership

The role or behaviors of individuals who follow the lead or direction of others, contributing to the group's or organization's goals.

Emergent Leader

An individual who naturally comes to be recognized as a leader by peers within a group due to their actions, decisions, and influence rather than formal appointment.

Legitimate Leader

An individual who holds a leadership position that is recognized and accepted by followers as rightful and lawful based on established rules or standards.

Assigned Leader

A person who is officially designated to hold a leadership position within an organization, often based on authority and responsibility given by the organization's hierarchy.