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:

Melencolia I

An enigmatic engraving created by the German Renaissance artist Albrecht Dürer in 1514, depicting a winged female figure thought to symbolize melancholy.

Optimistic Note

An expression or remark characterized by hopefulness and confidence about the future or the successful outcome of something.

Doctrinal Differences

Variations and disagreements in the doctrinal beliefs and teachings among different religious or ideological groups.

Religious Imagery

Visual representations used within religious contexts to depict sacred figures, narratives, symbols, and concepts central to religious traditions.