Yong Contributes a Machine Having an Adjusted Basis of $20,000

question 53

Multiple Choice

Yong contributes a machine having an adjusted basis of $20,000 and an FMV of $25,000 for a 10% partnership interest. Yong had taken $10,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Yong must recognize

• A)no gain or loss.
• B)a $5,000 Sec. 1245 gain.
• C)a $5,000 capital gain.
• D)$10,000 ordinary income.

Understand the structure and composition of the Federal Reserve Board.

Define and explain the concept of eminent domain.

Distinguish between fiscal policy, monetary policy, and other governmental powers.

Explore the mechanisms through which the government supports or regulates economic activities.

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Definitions:

Regional Shift

Regional shift describes changes in economic, social, or demographic conditions within a specific geographical region, often leading to significant transformations in that area's development or industry focus.

Southern and Western States

Refers to the geographic regions in the United States broadly characterized by their distinct cultural, economic, and climatic differences from the Northern and Eastern parts of the country.

Buying Power

The capacity of an individual or organization to purchase goods and services, often influenced by income, credit availability, and economic conditions.

Economic Impact

The effect of an event, policy, or market condition on the economy, affecting factors such as employment, income, and economic growth.