Nick and Rodrigo Form the NRC Partnership by Combining the Assets

question 85

Multiple Choice

Nick and Rodrigo form the NRC Partnership by combining the assets of their respective businesses. Nick contributes $10,000 and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Rodrigo contributes $90,000 and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NRC also assumes $60,000 of debt on Rodrigo's assets. What is Nick's basis in his partnership interest?

• A)$70,000
• B)$90,000
• C)$100,000
• D)$120,000
• E)$160,000

---

Definitions:

Philanthropy

The act of donating money, goods, services, or time to support a charitable cause or contribute to the welfare of others.

Employment Act of 1967

U.S. legislation aimed at promoting maximum employment, production, and purchasing power, often associated with measures to combat unemployment and inflation.

Corporate Philanthropy

Effort of an organization to make a contribution to the communities in which it earns profits.