Mark and Addison Formed a Partnership

question 108

Multiple Choice

Mark and Addison formed a partnership.Mark received a 25% interest in partnership capital and profits in exchange for land with a basis of $40,000 and a fair market value of $60,000.Addison received a 75% interest in partnership capital and profits in exchange for $180,000 of cash.Three years after the contribution date, the land contributed by Mark is sold by the partnership to a third party for $76,000.How much taxable gain will Mark recognize from the sale?

• A)$0.
• B)$9,000.
• C)$24,000.
• D)$36,000.
• E)None of the above.

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Definitions:

Labor Supply Curve

A graphical representation showing the relationship between the quantity of labor that workers are willing to provide and the wage rate.

Pay Raise

An increase in the amount of money earned by an employee.

Wages Paid

The total compensation provided to employees in exchange for their labor, often based on hourly or monthly rates.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across the economy or within a specific sector.