Bart Contributes $160,000 to the Tuna Partnership for a 30

question 133

Multiple Choice

Bart contributes $160,000 to the Tuna Partnership for a 30% interest. During the first year of operations, Tuna has a profit of $30,000. At the end of the first year, Tuna has outstanding loans from the following banks. What is Bart's at-risk basis in Tuna at the end of the first year?

• A) $160,000.
• B) $169,000.
• C) $175,000.
• D) $187,000.
• E) None of the above.

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Definitions:

Treasury Shares

Stocks that the original issuing company repurchased, subsequently decreasing the quantity of available shares in the market.

Percent Ownership

The percentage of an entity or asset owned by an investor or company, often determining the level of control or influence.

Excess Acquisition-Date Fair Value

Refers to the amount by which the fair value of the acquired net assets exceeds the purchase consideration in a business combination.