TEC Partners Was Formed During the Current Tax Year

question 89

Multiple Choice

TEC Partners was formed during the current tax year. It incurred $10,000 of organizational expenses, $80,000 of startup expenses, and $5,000 of transfer taxes to retitle property contributed by a partner. The property had been held as MACRS property for ten years by the contributing partner, and had an adjusted basis to the partner of $300,000 and fair market value of $400,000. Which of the following statements is correct regarding these items?

• A) TEC treats the contributed property as a new MACRS asset placed in service on the date the property title is transferred.
• 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 capitalize the transfer tax and treat it as a new asset placed in service on the date the property is contributed.
• E) None of the above statements are true.

Identify and correct wordiness in business communication to enhance clarity and conciseness.

Apply the concept of 'you-attitude' in crafting business messages to focus on the audience's perspective and needs.

Utilize passive voice strategically in business communication to avoid assigning blame.

Recognize the importance of specifying race or age only when relevant to the message's content.

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Definitions:

Concrete Level

The specific, tangible aspect or stage of a process or phenomenon, often contrasted with abstract or theoretical levels.

Insider's Viewpoints

Insider's viewpoints refer to perspectives and insights from individuals who are part of a particular group, culture, or organization, offering detailed and often personal understandings.

Outsider's Viewpoints

Perspectives or insights gained from individuals not affiliated with or directly involved in a particular social group or situation.

Social Reality

The complex and subjective construction of social life and relationships formed through shared beliefs and practices.