Danielle Has a Basis in Her Partnership Interest of $12,000

question 48

Multiple Choice

Danielle has a basis in her partnership interest of $12,000. She receives a current distribution of $8,000 cash and equipment with a basis of $7,000. There is no potential gain under Sec. 737. What is her basis in the equipment?

• A)$0
• B)$4,000
• C)$7,000
• D)none of the above

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Definitions:

Responsive

Being quick to react or respond appropriately to changes or stimuli.

Demanding

Requiring or claiming more than is generally regarded as due; often implies a challenging or high requirement of effort, skill, or attention.

Social Setting

Refers to the physical or social context in which people live, work, or interact.

Adult Supervision

The oversight provided by an adult, ensuring safety and providing guidance or assistance to children or to individuals requiring care.