Nick and Rodrigo Form the NRC Partnership by Combining the Assets

question 82

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 Rodrigo's basis in his partnership interest?

• A)$180,000
• B)$220,000
• C)$240,000
• D)$300,000
• E)$360,000

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Definitions:

Moral Decisions

The process of choosing actions that comply with an individual's ethical beliefs and values.

Prefrontal Cortex

A region of the frontal lobe of the brain implicated in a variety of complex behaviors, including planning, decision making, and moderating social behaviour.

Reasoning Ability

The cognitive capacity to process information, make logical decisions, and solve problems based on available information.

Prefrontal Cortex

The prefrontal cortex is a part of the brain located at the front of the frontal lobe, important for decision making, complex thought, and moderating social behaviour.