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Bryan,Shahin,and Michele Form a Partnership

question 22

Essay

Bryan,Shahin,and Michele form a partnership.Bryan and Shahin contribute inventory and a building,respectively.Michele agrees to perform all of the accounting and office work in exchange for a 10% interest. Bryan,Shahin,and Michele form a partnership.Bryan and Shahin contribute inventory and a building,respectively.Michele agrees to perform all of the accounting and office work in exchange for a 10% interest.   a.Do any of the partners recognize any gain? If so,how much and why? b.What is each partner's basis in his or her partnership interest? c.What is the basis to the partnership of each asset? a.Do any of the partners recognize any gain? If so,how much and why?
b.What is each partner's basis in his or her partnership interest?
c.What is the basis to the partnership of each asset?


Definitions:

External Attribution

The process of attributing one's own behavior or the behavior of others to external factors or situations.

Altruism

Behavior that is aimed at helping another, requires some self-sacrifice, and is not performed for personal gain.

Conformity

Changing or adopting a behavior or an attitude in an effort to be consistent with the social norms of a group or the expectations of other people.

Compliance

Acting in accordance with the direct requests of other people.

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