1. Karen and Jack form a partnership. Each is a 50% partner. Karen contributes $140,000 of cash and Jack contributes $160,000 of unrealized accounts receivable from his cash basis sole proprietorship. What is Karen's basis in the partnership?

a. $160,000 b. $70,000 c. $140,000 d. 0

2. During the current year, Norman contributed investment property to M.A. Partnership for 40% interested in the partnership. His basis in the property was $8,000 and the property had a fair market value of $10,000 on the date of the contribution to the partnership. How much gain/loss should Norman report as a result of the contribution to the partnership?

a. $2000 gain b. No gain or loss c. $8000 gain d. $10000 loss

3. Nadal Academy Corporation has taxable income before charitable contributions of 100,000. In the current year, the corporation made 12,000 in charitable contributions. How much can the corporation deduct on its tax return for charitable contributions?

a. $5000 b. 0 c. $12000 d. 10000