On January 1 of the Current Year,Anna and Jason Form

question 97

Multiple Choice

On January 1 of the current year,Anna and Jason form an equal partnership.Anna contributes $50,000 cash and a parcel of land (adjusted basis of $100,000; fair market value of $150,000) in exchange for her interest in the partnership.Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest.Which of the following statements is true concerning the income tax results of this partnership formation?

• A)Jason recognizes a $20,000 gain on his property transfer.
• B)Jason has a $200,000 tax basis for his partnership interest.
• C)Anna has a $150,000 tax basis for her partnership interest.
• D)The partnership has a $150,000 adjusted basis in the land contributed by Anna.

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Definitions:

All-You-Can-Eat

All-You-Can-Eat offers patrons the ability to consume as much food as they desire for a fixed price, commonly found in restaurants and buffets.

Need

A requirement essential for an organism to live a healthy life, or in a business context, a demand that drives consumer behavior or market trends.

Organizational Buying

The process by which businesses or organizations make purchasing decisions and buy products and services for operational or resale purposes.

Decision Criteria

Decision criteria are the standards or benchmarks used to guide the decision-making process, helping to evaluate and prioritize different options.