TEC Partners Was Formed During the Current Tax Year

question 24

Multiple Choice

TEC Partners was formed during the current tax year. It incurred $10,000 of organizational expenses, $80,000 of startup expenses, $200,000 of syndication costs, and $5,000 of transfer taxes to retitle property contributioned by a partner. Which of the following statements is correct regarding these payments?

• A) TEC may deduct $5,000 of the syndication costs; the remaining amount must be amortized.
• B) TEC must amortize the $10,000 of organizational expenses over 180 months.
• C) TEC's startup expenses are amortized over 60 months.
• D) TEC must add the transfer tax to the basis of the contributed property.
• E) None of the above statements are true.

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Definitions:

Overextension

in language development, refers to the application of a word in a broader context than is appropriate, common in early speech.

Metacognition

The recognition and comprehension of an individual's own cognitive activities, commonly described as "thinking about thinking."

Reflect on your Own Thinking

The meta-cognitive process of analyzing one’s own thoughts, beliefs, and cognitive processes.

Zone of Proximal Development

A concept in developmental psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.