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Zoey Contributed Property with a Tax Basis of $25,000 and a Fair

Question 42

Multiple Choice

Zoey contributed property with a tax basis of $25,000 and a fair market value of $60,000 to a newly formed partnership in exchange for a 40 percent interest.How much income must Zoey recognize as a result of the transaction?


A) $60,000
B) $35,000
C) $25,000
D) 0

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