Hunter Contributes Property Having a $75,000 FMV and a $65,000

question 32

Multiple Choice

Hunter contributes property having a $75,000 FMV and a $65,000 adjusted basis which is subject to a $36,000 mortgage in exchange for a one-fourth interest in the ABC Partnership.The partnership owes no other debts,but does assume this mortgage.Profits and losses are shared equally and each partner has a one-fourth interest in partnership capital.Hunter's basis in the partnership is

• A)$38,000.
• B)$48,000.
• C)$74,000.
• D)$84,000.

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Definitions:

Ambiguity

The quality of being open to more than one interpretation, lacking clear definition or boundaries, which can lead to uncertainty or confusion.

Country of Origin Effects

Refers to the influence that the country where a product was manufactured has on consumers' perceptions and attitudes towards the product.

Nation State

A distinct, sovereign entity defined by geographic boundaries, government, and shared cultural history and identity among its population.

Patriotism

A sense of pride and loyalty towards one's country, often associated with the belief in and support for its values and defense.