Martha transferred property with a FMV of $60,000 (adjusted basis $30,000), which is subject to a $40,000 mortgage in exchange for a one-third interest in a partnership. The partnership has no other liabilities. The partners of MNO own the partnership equally. The partnership's basis in the property contributed is

A. $30,000.
B. $60,000.
C. $40,000.
D. $0.


Answer: A

Business

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Electrical costs at one of Rome Corporation's factories are listed below: Machine-Hours Electrical CostMarch458  $1,007April423  $934May440  $979June409  $902July426  $952August372  $822September414  $926October431  $949November468  $1,025 Management believes that electrical cost is a mixed cost that depends on machine-hours.Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to:

A. $2.21 B. $2.11 C. $1.80 D. $0.47

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What is the total variable weekly cost including safety stock cost?

Kelly's Service Station does a large business in tune-ups. Demand has been averaging 210 spark plugs per week. Holding costs are $0.01 per plug per week, and reorder costs are estimated at $10 per order. Kelly does not want to be out of stock on more than 1% of his orders. There is a one-day delivery time. The standard deviation of demand is five plugs per day. Assume a normal distribution of demand during lead time and a seven-day work week.

Business

While perception is a part of the organizing framework for understanding and applying OB, it is a relatively unimportant process.

Answer the following statement true (T) or false (F)

Business

Suppose that Papa Bell Inc.'s equity is currently selling for $95 per share, with 4 million shares outstanding. If the firm also has 80 thousand bonds outstanding, which are selling at 91.5 percent of par ($1,000), what are the firm's current capital structure weights?

A. Weight of Equity = 81.29 percent; Weight of Debt = 18.71 percent B. Weight of Equity = 65.19 percent; Weight of Debt = 34.81 percent C. Weight of Equity = 77.80 percent; Weight of Debt = 12.20 percent D. Weight of Equity = 83.85 percent; Weight of Debt = 16.15 percent

Business