Emma Contributes Property Having a $24,000 FMV and a $15,000

question 82

Multiple Choice

Emma contributes property having a $24,000 FMV and a $15,000 adjusted basis and also renders legal services valued at $22,000 in exchange for a 30% interest in the capital and profits of the ABC partnership.The tax results to Emma will be

• A)no income is recognized and a partnership basis of $37,000.
• B)ordinary income of $22,000 and a partnership basis of $37,000.
• C)ordinary income of $22,000 and a partnership basis of $46,000.
• D)no income is recognized and a partnership basis of $46,000.

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Definitions:

Run and Control Charts

Run and control charts are tools used in the field of statistics and quality control for monitoring, controlling, and improving process performance over time by charting data points.

Turgor Pressure Gradient

The difference in pressure potential between two regions in a plant, contributing to water and nutrient movement.

Turgor Pressure

The pressure within plant cells that is attributable to the water-filled vacuole, pushing the cell membrane against the cell wall, and is crucial for plant rigidity and stability.

Translocation

The movement of substances within a plant, particularly the transport of sugars and other molecules from leaves to other tissues via the phloem.