Sue and Andrew Form SA General Partnership

question 50

Multiple Choice

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $10,000 of cash and land with a FMV of $55,000. Her basis in the land is $20,000. Andrew contributes equipment with a FMV of $12,000 and a building with a FMV of $33,000. His basis in the equipment is $8,000, and his basis in the building is $20,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

• A) $0.
• B) $4,000.
• C) $48,000.
• D) $52,000.

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Definitions:

Micro-Macro

Refers to the analytical frameworks in social science that consider the interplay between individual (micro) and society-wide (macro) phenomena.

Agency-Structure

The ongoing debate and theoretical framework in sociology concerning the extent of an individual's free will (agency) versus the limiting or enabling effects of social structures.

Production And Consumption

The processes of creating goods and services (production) and using or purchasing them (consumption), fundamental to economic systems.

Micro Power

Refers to the localized, often personal, forms of power and influence that operate at the micro-level within societies or institutions.