Mark Receives a Proportionate Nonliquidating Distribution

question 92

Multiple Choice

Mark receives a proportionate nonliquidating distribution.At the beginning of the partnership year,the basis of his partnership interest is $100,000.During the year,he received a cash distribution of $40,000 and a property distribution (basis of $30,000,fair market value of $25,000) .In addition,Mark's share of partnership liabilities was reduced by $10,000 during the year.How much gain or loss does Mark recognize;what is his basis in the property he received;and what is his remaining basis in the partnership interest?

• A)$25,000 loss;$25,000 basis in property;$0 remaining basis.
• B)$30,000 loss;$30,000 basis in property;$0 remaining basis.
• C)$0 gain or loss;$25,000 basis in property;$25,000 remaining basis.
• D)$0 gain or loss;$30,000 basis in property;$20,000 remaining basis.
• E)$0 gain or loss;$20,000 basis in property;$30,000 remaining basis.

Grasp the application and implications of the reporting entity concept in consolidation accounting.

Identify various types of entities and their inclusion within a controlled group under consolidation accounting.

Comprehend the concepts of 'shared control' and 'joint control' as per Accounting Standard AASB 127.

Recognize the requirements for the preparation of separate financial statements under specific accounting standards.

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