Edith Contributes Land Having $100,000 FMV and a $85,000 Adjusted

question 71

Multiple Choice

Edith contributes land having $100,000 FMV and a $85,000 adjusted basis,which is subject to a $66,000 mortgage in exchange for a one-third interest in the EHK Partnership.The partnership owes no other liabilities.After the contribution,Kate,Edith,and Helen share profits and losses equally and each has a one-third interest in the partnership capital.Assume that Kate has a basis in her partnership interest of $50,000 before Edith's contribution to the partnership.The effect of Edith's contribution on partner Kate's basis is to

• A)decrease Kate's basis to $28,000.
• B)increase Kate's basis to $72,000.
• C)increase Kate's basis to $77,000.
• D)No effect on Kate's basis.

Grasp the concept of absolute and relative references in formulas and named ranges.

Recognize the significance of workbook and worksheet protection options for data security.

Know how to manage user interface configurations and user account settings.

Understand the use of comments, notes, and track changes to collaborate on Excel workbooks.

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