Stella Acquired a 25% Interest in the STUV Partnership by Contributing

question 73

Multiple Choice

Stella acquired a 25% interest in the STUV Partnership by contributing land having an adjusted basis of $32,000 and a fair market value of $100,000. The land was subject to a $48,000 mortgage, which was assumed by STUV. No other liabilities existed at the time of contribution. What is Stella's basis in her partnership interest?

• A)$0
• B)$32,000
• C)$52,000
• D)$64,000

Recognize the importance of brand loyalty and image in cost-leadership and differentiation strategies.

Identify examples of companies employing cost leadership and differentiation strategies.

Describe the role of competition and cooperation within a business ecosystem.

Understand the significance of forecasting and innovation in business strategy.

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.

Marginal Private Benefits

The additional benefit received by consumers or producers from consuming or producing one more unit of a good or service.

Negative Externalities

Unintended adverse effects on third parties not involved in an economic transaction, like pollution.