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:

Programs

A set of planned activities or procedures designed to achieve specific outcomes or objectives.

Decision Program

A predefined set of policies or procedures followed during the decision-making process to achieve a certain objective.

Standing Order

A pre-established directive that authorizes actions to be taken or procedures to be followed under certain conditions without the need for further approval.

Non-programmed Decision Making

Non-programmed decision making involves tackling novel, unstructured problems requiring unique solutions, often in high-stakes or uncertain situations.