Bart Contributes $100,000 to the Fish Partnership for a 40

question 29

Multiple Choice

Bart contributes $100,000 to the Fish Partnership for a 40% interest. During the first year of operations, Fish has a profit of $20,000. At the end of the first year, Fish has outstanding loans from the following banks.
What is Bart's at-risk basis in Fish at the end of the first year?

• A)$100,000
• B)$108,000
• C)$112,000
• D)$124,000
• E)None of the above

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Definitions:

Single Firm

Refers to a business entity that is the sole provider of a particular product or service in a market, often leading to a monopoly situation.

Short-run Cost Function

A mathematical relation that shows the total cost associated with producing a good or service, emphasizing the costs that vary with the level of output in the short term.

Productivity Factor

An indicator of the efficiency with which inputs are converted into outputs in the production process.

Production Technique

The methods and processes used by businesses to manufacture goods or provide services.