Jane Contributes Land with an FMV of $100,000 and a Basis

question 112

Essay

Jane contributes land with an FMV of $100,000 and a basis of $80,000 to the Green Partnership in exchange for a 25% partnership interest. The partnership assumes the $40,000 mortgage on the land. Mary has a 25% share of partnership liabilities. The Green Partnership has $8,000 in liabilities immediately before Jane's contribution. What is Jane's basis in her partnership interest?

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Definitions:

Negative Reinforcement

A form of conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Law Of Effect

A principle in psychology that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Operant Conditioning

A learning process through which behavior is shaped and maintained by its consequences, including reinforcements and punishments.