John Has a Basis in His Partnership Interest of $30,000

question 85

Multiple Choice

John has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , and investment land (FMV $7,000, basis $6,000) . The partners' relative interest in the Sec. 751 assets do not change as a result of the current distribution. His basis in the land is

• A)$5,000.
• B)$6,000.
• C)$7,000.
• D)$10,000.

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Definitions:

Independent Samples

Refers to samples drawn from two populations where the selection of a sample from one population is not influenced by the selection from the other.

Population Means

The average value of a particular characteristic in the entire population.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or replicates.