Sharon Contributed Property to the Newly Formed QRST Partnership

question 31

Multiple Choice

Sharon contributed property to the newly formed QRST Partnership.The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date.The property was also encumbered by a $120,000 nonrecourse debt,which was transferred to the partnership on that date.Another partner,Rochelle,shares 30% of the partnership income,gain,loss,deduction,and credit.Under IRS regulations,Rochelle's share of the nonrecourse debt for basis purposes is:

• A)$20,000.
• B)$30,000.
• C)$36,000.
• D)$100,000.
• E)$120,000.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any need for prior learning or conditioning.

Unconditioned Response

An involuntary, inherent reaction to a stimulus, occurring without any learned or conditioned prior history.

Unconditioned Response

An automatic and natural reaction to a stimulus that does not require learning.

Increased Heartbeat

A condition where the heart rate speeds up, typically in response to exercise, stress, or excitement.