Patrick Purchased a One-Third Interest in the PPP Partnership for $600,000

question 27

Multiple Choice

Patrick purchased a one-third interest in the PPP partnership for $600,000. At the time of the purchase, the partnership had a 754 election in effect and its only asset was land with a basis of $1,500,000. This year, PPP sells the land for $1,800,000. What is Patrick's recognized share of the gain on the sale of the land?

• A)$0
• B)$100,000
• C)$300,000
• D)none of the above

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Definitions:

Regular Rhythm

A consistent and repeated pattern or sequence in a process, often related to musical beats or biological cycles.

Hypothermia

A medical emergency that occurs when your body loses heat faster than it can produce heat, causing a dangerously low body temperature.

Normal Temperature

The average body temperature maintained by the human body under resting conditions.

Hyperthermic

Characterized by an abnormally high body temperature, often as a result of illness or environmental factors.