Kevin,Chuck,and Greg Contributed Assets to Form the Equal KCG Partnership

question 135

Multiple Choice

Kevin,Chuck,and Greg contributed assets to form the equal KCG Partnership.Kevin contributed cash of $50,000 and land with a basis of $80,000 (fair market value of $50,000) .Chuck contributed cash of $30,000 and land with a basis of $40,000 (fair market value of $70,000) .Greg contributed cash of $60,000 and a fully depreciated property ($0 basis) valued at $40,000.Which of the following tax treatments is not correct?

• A)Kevin's basis in his partnership interest is $130,000.
• B)Chuck's basis in his partnership interest is $100,000.
• C)Greg's basis in his partnership interest is $60,000.
• D)KCG has a basis of $80,000,$40,000,and $0 in the land and property (excluding cash)contributed by Kevin,Chuck,and Greg,respectively.
• E)All of these statement are correct.

---

Definitions:

Emotional Ups and Downs

The fluctuation of feelings and moods that an individual experiences over time, ranging from highs, such as happiness, to lows, like sadness.

Pubertal Hormones

Hormones that are significant in the development of secondary sexual characteristics and reproductive capabilities during puberty.

Frontal Lobes

The part of the brain located behind the forehead that is responsible for executive functions such as judgment, planning, problem-solving, and impulse control.

Maturation

The process of becoming mature, involving growth and developmental changes, both physically and psychologically.