Richard Made a Contribution of Property to the Newly Formed

question 52

Multiple Choice

Richard made a contribution of property to the newly formed QRST Partnership.The property had a $30,000 adjusted basis to Richard and a $100,000 fair market value on the contribution date.The property was also encumbered by a $50,000 nonrecourse debt,which was transferred to the partnership on that date.Another partner,Sylvia,shares 1/3 of the partnership income,gain,loss,deduction,and credit.Under IRS regulations,Sylvia's share of the nonrecourse debt for basis purposes is:

• A)$10,000.
• B)$30,000.
• C)$36,667.
• D)$40,000.
• E)$50,000.

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Definitions:

Sales Engineers

Technical specialists who work in high-tech sectors and typically have educational backgrounds in fields like engineering, computer science, and physics.

Nonmanagerial

Pertaining to roles or positions within an organization that do not have supervisory or management responsibilities over others.

Infrequently Purchased

Items or services bought occasionally or rarely, often due to their durability, high cost, or specialized nature.

Personal Selling

The process of interacting one-on-one with someone to provide information that will influence a purchase or action.