Emma Contributes Property Having a $24,000 FMV and a $15,000

question 82

Multiple Choice

Emma contributes property having a $24,000 FMV and a $15,000 adjusted basis and also renders legal services valued at $22,000 in exchange for a 30% interest in the capital and profits of the ABC partnership.The tax results to Emma will be

• A)no income is recognized and a partnership basis of $37,000.
• B)ordinary income of $22,000 and a partnership basis of $37,000.
• C)ordinary income of $22,000 and a partnership basis of $46,000.
• D)no income is recognized and a partnership basis of $46,000.

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Definitions:

Brain Function

Encompasses the activities and processes that the brain performs to support physical coordination, intellectual capabilities, and emotional and psychological well-being.

Glucose

A basic form of sugar that serves as a crucial source of energy for living beings and is found in numerous carbohydrate structures.

Electroencephalograph

An instrument used to record the electrical activity of the brain, typically via electrodes placed on the scalp.

Brain-Wave Activity

The patterns of neuronal electrical oscillations in the brain, detectable with techniques such as EEG, and associated with different states of consciousness.