Daniel acquires a 30 percent interest in the PPZ Partnership from Paolo, an existing partner, for $39,000 of cash. The PPZ Partnership has borrowed $10,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?
A. $39,000.
B. $42,000.
C. $49,000.
D. $46,000.
Answer: B
You might also like to view...
When answering requests and a potential sale is involved, one important goal is to
A) leave your audience with a good impression of you and your firm. B) provide negative information about any possible competitors. C) use hard sell techniques to pressure the reader into making the purchase. D) answer only those questions that present your product or firm in a positive light. E) encourage an immediate sale by offering an incentive for an immediate purchase.
What is a client/server network?
A. A series of efficiently sized units, each of which contains the address of the destination computer. B. The geometric arrangement of the actual physical organization of the computers and other network devices in a network. C. An intelligent connecting device that examines each packet of data it receives and then decides which way to send it onward toward its destination. D. A model for applications in which the bulk of the back-end processing, such as performing a physical search of a database, takes place on a server, while the front-end processing, which involves communicating with the users, is handled by the clients.
Kelly, Lars, and Mona agree to be partners in Neighborhood Delivery Service (NDS), splitting the profits equally. Kelly contributes 67 percent of the capital. When NDS is dissolved, its liabilities are greater than its assets. The losses are paid by
A. all of the partners in proportion to their capital contributions. B. all of the partners in proportion to their shares of the profits. C. Kelly because she contributed most of the capital. D. Lars and Mona because they contributed the least of the capital.
A $2,000 bond at an 8.45% interest rate is purchased at 75% of face value. What is the rate of annual yield to the investor? Assume the bond is purchased on the interest rate
a. 29% b. 8% c. 11% d. 75%