Jamie Contributed Fully Depreciated ($0 Basis)property Valued at $30,000 to the JKLM

question 31

Multiple Choice

Jamie contributed fully depreciated ($0 basis) property valued at $30,000 to the JKLM Partnership in exchange for a 40% interest in partnership capital and profits.During the first year of partnership operations,JKLM had net taxable income of $80,000 and tax-exempt income of $10,000.The partnership distributed $20,000 cash to Jamie.Her share of partnership recourse liabilities on the last day of the partnership year was $13,000.Jamie's adjusted basis (outside basis) for her partnership interest at year-end is:

• A)$16,000.
• B)$29,000.
• C)$59,000.
• D)$79,000.
• E)None of the above.

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical analysis of capitalism and his influence on the development of socialism and communism.

Variable Costs

Costs that change in proportion to the level of activity or volume of output in production, such as raw materials and labor.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business.

Total Revenue

The total amount of money generated by a company or entity from its primary activities, such as sales of goods or services, before any expenses are deducted.