Sue and Andrew Form SA General Partnership

question 50

Multiple Choice

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $10,000 of cash and land with a FMV of $55,000. Her basis in the land is $20,000. Andrew contributes equipment with a FMV of $12,000 and a building with a FMV of $33,000. His basis in the equipment is $8,000, and his basis in the building is $20,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

• A) $0.
• B) $4,000.
• C) $48,000.
• D) $52,000.

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Definitions:

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, comprising Russia and several other republics, and was a primary player in the Cold War.

War Powers Act

A 1973 United States federal law that aims to balance the president's power to commit the country to armed conflict without Congress's consent.

Imperial Presidency

A term used to describe the modern presidency of the United States, which is characterized by greater powers than those enumerated in the U.S. Constitution.

Commander-In-Chief

The title held by the president of the United States as the highest-ranking officer in the country's armed forces, responsible for military decisions.