Cramer Corporation and Mr

question 17

Multiple Choice

Cramer Corporation and Mr. Chips formed a partnership in which Cramer is the general partner and Mr. Chips is a limited partner. Cramer contributed $500,000 cash, and Mr. Chips contributed a building with a $500,000 FMV and $300,000 tax basis. The partnership immediately borrowed $700,000 of recourse debt. What is Cramer's tax basis in its partnership interest?

• A) $500,000
• B) $1,200,000
• C) $850,000
• D) $650,000

---

Definitions:

Early Substance Abuse

The engagement in the use of illicit drugs, alcohol, or overuse of prescription medication at a young age, which can lead to significant health, legal, and social problems.

Fetal Alcohol Effects

Health problems that can occur in a baby when the mother drinks alcohol during pregnancy. These are less severe than fetal alcohol syndrome but may include growth and behavioral problems.

Menopause

Menopause marks the end of a woman's reproductive years, characterized by the cessation of menstrual periods and a decrease in hormonal production.

Gender Roles

Societal norms dictating the types of behaviors that are considered acceptable, appropriate, or desirable for people based on their actual or perceived sex.