The Dominguez Partnership Has the Following Assets on December 31

question 30

Multiple Choice

The Dominguez Partnership has the following assets on December 31: Antonio is a 20 percent partner and has a $7,000 basis in his partnership interest. The partnership has no liabilities. Antonio receives a liquidating distribution of $10,000 cash. What is the amount and character of the gain or income Antonio recognizes on this liquidating distribution?

• A) 0
• B) $1,000
• C) $2,000
• D) $3,000

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