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:

Behaviors

Actions or reactions of an individual or group in response to external or internal stimuli, which can be observed and measured objectively.

Praxis

The process by which theory, lesson, or skill is enacted, embodied, or realized.

Theses on Feuerbach

Eleven short philosophical notes written by Karl Marx, critiquing the ideas of Ludwig Feuerbach and outlining the materialist perspective.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed the theory of Marxism, critiquing the capitalist system and advocating for a classless society.