1.Jessie acquired a 25% interest in Restaurant Ventures LLC by contributing a building that was worth $50,000 and carried a mortgage balance of $25,000. Jessies basis in the building was $25,000. Restaurant Ventures LLC assumed the mortgage balance. What is Jessies basis in Restaurant Ventures LLC after the contribution?

$25,000

$6,250

$7,250

0

3. What is the impact to a partner of an increase in partnership liabilities?

No impact

Creates a taxable event

Increase partners outside basis

Results in a deductible loss

4. In January, Joe contributed $200 to Bulldog Bar, a partnership, in exchange for a 25% ownership in the partnership. Joe reported his share of partnership income of $1,000, and he took a cash distribution of $100. What is Joes basis at the end of the year?

$1,100

$200

$1,450

0

5. Terry has basis in Bulldog Bar, a partnership, of $15,000. He received a distribution of a piece of appreciated sports memorabilia worth $1,000 with a basis of $500. What is Terrys basis in Bulldog Bar after the distribution?

$14,000

$14,300

$14,500

$15,000

6. Which is NOT a period expense?

Syndication

costs Cost of Goods

Sold Wages paid to employees

Insurance