An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000, and subject to a liability of $60,000. Gerry contributes cash of $100,000. What amount of gain must Rita recognize as a result of this transaction?A. $35000 B. $65000
C. $70000
D. $25000
E. None of these choices are correct

A. $35000

Explanation:

The computation of the amount of gain that recognized is shown below:

= Value of the building adjusted + cash contributed - building liability + 50%  shares on debt

= $55,000 + $10,000 - $60,000 + $60,000 × 50%

= $55,000 + $10,000 - $60,000 + $30,000

= $35,000

Hence, the  amount of gain that recognized is $35,000

Therefore the correct option is A.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

answernaturalistic observation;