Laura Is a Real Estate Developer and Owns Property That

question 85

True/False

Laura is a real estate developer and owns property that is treated as inventory (not a capital asset) in her business.
She contributes a parcel of this land (basis of $15,000) to a partnership, also to be held as inventory. The fair market value of the property is $12,000 at the contribution date. After three years, the partnership sells the land for $10,000. The partnership will recognize a $5,000 ordinary loss on sale of the property.

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Definitions:

Low-level Disinfectant

A disinfectant that kills some viruses and bacteria, but not spore-forming or non-enveloped viruses, used for surface disinfection.

Incineration

Burn, setting afire.

Disposable Items

Products designed for a single use or a limited number of uses before being discarded.

Universal Precautions

Infection control guidelines recommending that blood and certain body fluids from all patients should be treated as potentially infectious for HIV, hepatitis, and other pathogens.