George Pays $10,000 for a 20% Interest in a General

question 81

Multiple Choice

George pays $10,000 for a 20% interest in a general partnership, which has recourse liabilities of $20,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. George's basis in his partnership interest is

• A)$10,000.
• B)$12,000.
• C)$14,000.
• D)$30,000.

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Definitions:

Tunica Adventitia

Outermost fibrous coat of a vessel or an organ that is derived from the surrounding connective tissue.

Leydig Cells

Cells located in the testes that produce testosterone and other androgens, crucial for male reproductive and secondary sexual characteristics.

Testosterone

A primary male sex hormone that plays key roles in health and well-being, including the development of male sexual characteristics, muscle mass, and bone density.

Rete Testis

A network of tubules in the testes where sperm partially matures and is transported to the epididymis.