Miguel Has a 50% Interest in Partnership Capital, Profits, and Losses

question 1

Multiple Choice

Miguel has a 50% interest in partnership capital, profits, and losses. The basis for his partnership interest is $50,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Miguel receives a distribution of land that has an FMV of $40,000 and an adjusted basis of $30,000. The land is subject to a $15,000 liability, which Miguel assumes. His basis in the partnership interest following the land distribution is

• A)$12,500.
• B)$20,000.
• C)$27,500.
• D)$35,000.

Understand the concept of globalization and its impact on business and workforce dynamics.

Recognize the importance of ethics and social responsibility in organizational conduct.

Identify the role of technology in transforming business practices and organizational structures.

Comprehend the significance of diversity and inclusion in the workplace and the challenges associated with it.

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Definitions:

Machine Hours

A measure of production time, calculated by totaling the amount of time machines are actively running in the production process.

Labour Hours

The total time worked by employees, typically used as a basis for labor cost allocation or productivity measurement.

Total Revenue Curve

A graphical representation that shows how total revenue changes with variations in the quantity of goods or services sold, illustrating the relationship between price and demand.

Quantity Sold

The total number of units of a product sold within a given time frame.