Rashad Contributes a Machine Having a Basis of $30,000 and an FMV

question 46

Multiple Choice

Rashad contributes a machine having a basis of $30,000 and an FMV of $25,000 to a partnership in exchange for a 20% interest in partnership capital, profits, and losses. Prior to the contribution, the partnership had recourse liabilities of $20,000. The partnership assumes a $20,000 recourse liability that is owed by Rashad on the machine. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Rashad's basis in his partnership interest is

• A)$11,000.
• B)$18,000.
• C)$22,000.
• D)$34,000.

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Definitions:

Disordered Behavior

Actions or patterns of behavior that deviate significantly from the norm, often indicating underlying mental or emotional issues.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors that cause distress, impairment in functioning, or both.

Adaptive Behavior

The collection of conceptual, social, and practical skills that people have learned to perform daily functions.

Subjective Discomfort

The personal experience of distress or unease, which can be a symptom in psychological disorders.