Shane Made a Contribution of Property to the Newly Formed

question 44

Multiple Choice

Shane made a contribution of property to the newly formed QRST Partnership. The property had a $80,000 adjusted basis to Shane and a $150,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Another partner, Rachel, shares 20% of the partnership income, gain, loss, deduction, and credit. Under IRS regulations, Rachel's share of the nonrecourse debt for basis purposes is:

• A) $16,000.
• B) $18,000.
• C) $45,000.
• D) $80,000.
• E) $90,000.

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Definitions:

Supply-Chain Management

Involves the strategic planning and execution of supply chain operations, focusing on optimizing cost, quality, and delivery to enhance customer value.

Compete

To strive against others for the purpose of achieving a goal, such as winning a market share or achieving a business objective.

Strategic

Pertaining to the identification, planning, and execution of actions designed to achieve long-term goals and objectives.

Purchasing

The process of obtaining goods or services, typically for business purposes, from an external source.