Al contributed to the AlphaBeta Partnership, a general partnership, cash of $30,000 in exchange for a 50 percent interest in the Alpha Partnership. At the same time, Bob contributed to the AlphaBeta Partnership a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. The AlphaBeta Partnership will assume the mortgage on the building. Which of the following Code Sections is or are relevant to the determination of whether or not Al recognizes gain or loss on this transaction? a. Only Code Section 722. b. Only Code Section 1001(c). c. Code Section 723 and Code Section 1001(a). d. Code Section 1001(c) and Code Section 721(a). 9. Al contributed to the AlphaBeta Partnership, a general partnership, cash of $30,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. At the same time, Bob contributed to the AlphaBeta Partnership a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. The AlphaBeta Partnership will assume the mortgage on the building. Which of the following Code Sections is or are relevant to the determination of Bobs basis in his partnership interest upon completion of this transaction? a. Only Code Section 722. b. Only Code Section 1012(a). c. Only Code Sections 1012(a) and 722. d. Code Sections 1012(a), 722, and 752(a). 10. A taxpayer is considered to be at risk under the at risk rules for which of the following and under what section of the Code? a. money borrowed by another for which payment is guaranteed by the taxpayer; Code Section 469(a). b. money borrowed by the taxpayer from another who has an equity interest in the taxpayers business; Code Section 61. c. qualified nonrecourse financing; Code Section 469. d. qualified nonrecourse financing; Code Section _____(if you conclude none of a, b, or c is correct, write in the citation for the correct section of the Internal Revenue Code, including the subsection and paragraph, if applicable). 11. Taxpayer owns a parcel of undeveloped real estate that has a basis to taxpayer of $200,000. Taxpayer purchased the real estate in 2003 for investment. Taxpayer sold the property to his nephew on January 10, 2017 for $80,000. Is the loss deductible by the taxpayer, and what Code sections are applicable to the transaction? Assume taxpayer has no other capital gains or losses for the year. a. No amount of the loss is not deductible because the sale is to a related party; Code Section 1001(a) and Code Section 267(a) and (d). b. The loss is deductible; Code Section 469(c)(7). c. $3,000 of the loss is deductible in the current year; Code Sections 1001(a) and 1211(b). d. None of the above answers is correct.