Mark and Addison Formed a Partnership

question 145

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

Analyze the role of financial markets and institutions in the global economy.

Understand the effects of globalization and financialization on labor standards, employment, and environmental policies.

Evaluate the impact of trade barriers and their removal on industries and economies.

Identify the benefits and criticisms of foreign direct investment and international investment.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to gauge inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic output over time by valuing goods and services at constant prices.

Money Supply

The complete inventory of monetary assets within an economy at a defined moment.

Money Supply Increases

A situation where the total amount of money in circulation within an economy is expanded.