On January 5,2016,Mike Acquires a 50% Interest in Precision Tools

question 13

Multiple Choice

On January 5,2016,Mike acquires a 50% interest in Precision Tools Partnership by contributing property with an adjusted basis of $20,000 and a fair market value of $24,000,subject to a mortgage of $16,000.What is Mike's basis in Precision Tools Partnership as of January 5,2016?

• A)$- 0 -
• B)$10,000
• C)$12,000
• D)$16,000
• E)$20,000

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Definitions:

Wholesalers

Businesses that buy goods in large quantities from manufacturers and then sell them in smaller amounts to retailers or other businesses.

Foreseeable Plaintiffs

Individuals who could be reasonably expected to be affected by the defendant's actions or negligence and therefore may have grounds to sue.

Product Liability

Product liability refers to the legal responsibility of manufacturers and sellers for injuries caused by defective or dangerous products.

Strict Product Liability Theory

A legal doctrine that holds a seller, distributor, or manufacturer liable for any damages caused by a defective product, regardless of fault.