An Equal Partnership Is Formed by Rita and Gerry

question 49

Multiple Choice

An equal partnership is formed by Rita and Gerry.Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000 and subject to a liability of $60,000.Gerry contributes cash of $100,000.What is the partnership's basis in the building contributed by Rita?

• A)$55,000
• B)$60,000
• C)$90,000
• D)$150,000
• E)None of the above

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Definitions:

Federalists

Advocates for a strong central government and supporters of the ratification of the U.S. Constitution in the late 18th century, as opposed to anti-federalists who favored stronger state governments.

Antifederalists

Political figures and activists in early American history who opposed the creation of a strong federal government, advocating instead for states' rights and a decentralized political structure.

Ratification Debate

The intense public and political discourse that took place during the process of ratifying the United States Constitution, with Federalists advocating for it and Anti-Federalists opposing it.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing fundamental rights and protections to American citizens.