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

question 70

Multiple Choice

Carlos 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) , land held as an investment (FMV $7,000, basis, $6,000) , and building (FMV $21,000, basis $9,000) . The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Carlos's basis in the building is

• A)$2,500.
• B)$6,000.
• C)$7,500.
• D)$9,000.

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Definitions:

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and is related to self-regulation.

Anxious Cluster

A group of personality disorders characterized by high levels of anxiety and fearfulness; includes avoidant, dependent, and obsessive-compulsive personality disorders.

Obsessive-Compulsive

Referring to a disorder characterized by unwanted, persistent thoughts (obsessions) and repetitive behaviors (compulsions) that an individual feels the urge to perform.

Avoidant

Characterized by a pattern of social inhibition, feelings of inadequacy, and a hypersensitivity to negative evaluation.