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:

Spreading Activation

A method for searching associative networks, neural networks, or semantic networks, where ideas are connected based on their association.

Semantic Network

A conceptual structure used in cognitive psychology and artificial intelligence that represents semantic relations between concepts in a network or graph.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the information to be remembered, making it more memorable.

Conceptual Hierarchy Response

A method of organizing knowledge or responses based on levels of abstraction, from general to specific.