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:

Lifestream

A digital chronology of an individual's life activities, both online and off, aggregated from various sources and displayed in real-time.

Demographic

Statistical characteristics of human populations, such as age, gender, income, and education, used for identifying and analyzing target audiences.

Educational Attainment

The highest level of education an individual has completed, often used as a measure of workforce qualifications or socio-economic status.

Family Life Cycle

Stages through which a family progresses over time, from single individuals to married couples, parenthood, and retirement.