Binita Contributed Property with a Basis of $40,000 and a Value

question 68

Multiple Choice

Binita contributed property with a basis of $40,000 and a value of $50,000 to the BE Partnership in exchange for a 20% interest in partnership capital and profits.During the first year of partnership operations,BE had net taxable income of $30,000 and tax-exempt interest income of $10,000.The partnership distributed $10,000 cash to Binita.Binita's adjusted basis (outside basis) for her partnership interest at year-end is:

• A)$36,000.
• B)$38,000.
• C)$60,000.
• D)$70,000.

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Definitions:

Ovaries

Female reproductive organs that produce eggs and hormones, including estrogen and progesterone.

Adrenal Glands

Small glands located above the kidneys that produce hormones such as adrenaline and cortisol, which are involved in stress responses.

Y Chromosome

A sex chromosome that is typically present in males, carrying genes that determine male sexual traits.

X Chromosome

One of the two sex chromosomes, typically present as a pair in females (XX) and paired with a Y chromosome in males (XY), playing a crucial role in genetic determination of sex.