Jamahl Has a 65% Interest in a Partnership

question 55

Multiple Choice

Jamahl has a 65% interest in a partnership.Jamahl sells land to the partnership for $70,000.Prior to the sale,the land had a FMV of $70,000 and an adjusted basis of $90,000 to Jamahl.Due to the sale,Jamahl will recognize

• A)a gain of $20,000.
• B)a loss of $20,000.
• C)$0,but he will have a carryover loss of $20,000.
• D)$0,and he will not have any carryover loss.

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Definitions:

Enterprise Success

The achievement of desired business outcomes, such as profitability, growth, market share, or innovation, by a company or business enterprise.

Soviet Union

A former federal socialist state in the northern Eurasia that existed from 1922 to 1991, composed of multiple republics, with Moscow as its capital.

Quantity of Output

The total amount of goods or services produced by a firm or industry during a specific time period.

Surplus Supply

A situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price.