Bernard and Leon Formed a Partnership on January 1 with Cash

question 46

Multiple Choice

Bernard and Leon formed a partnership on January 1 with cash contributions of $600,000 and $200,000,respectively.The partners agree to share profits and losses in the ratio of their initial capital contributions.The partnership immediately borrowed $800,000.What is Bernard's tax basis in his partnership interest?

• A)$1,200,000
• B)$600,000
• C)$800,000
• D)$1,400,000

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Definitions:

Procedural Flexibility

The ability to adapt the processes and rules of an organization or system to accommodate different situations or requirements.

Continuous Process Improvement

An ongoing effort to enhance products, services, or processes by making incremental improvements over time.

Corporate Culture

The shared values, beliefs, and practices that characterize an organization and influence its employees' behavior and attitudes.

Job Control Unionism

A labor movement strategy focusing on gaining control over work conditions, job distribution, and employment terms through collective bargaining.