Leslie Contributes a Building Worth $88,000, with an Adjusted Basis

question 8

Multiple Choice

Leslie contributes a building worth $88,000, with an adjusted basis of $40,000, to a partnership in exchange for a 50 percent interest in the partnership's capital and profits.What is the amount of Leslie's basis in her partnership interest immediately after the contribution?

• A)$20,000
• B)$40,000
• C)$44,000
• D)$88,000
• E)None of the above

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Definitions:

Stimulus

Any event or situation that evokes a response from an organism.

Observational Learning

A process in which an individual learns new responses by observing the behavior of another (a model) rather than through direct experience; sometimes called vicarious conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, aiming at the strengthening or weakening of voluntary behaviors.