Jamahl Has a 65% Interest in a Partnership

question 119

Multiple Choice

Jamahl has a 65% interest in a partnership.Jamahl sells land to the JK 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.Two years later,the partnership sells the land for $123,000.Due to the sale,the partnership will recognize

• A)a gain of $13,000.
• B)a loss of $53,000.
• C)a gain of $33,000.
• D)a loss of $20,000.

---

Definitions:

Optimising Decisions

Making choices that lead to the best possible outcome, considering all available information and constraints.

Satisficing Decisions

Choose the first satisfactory alternative that comes to your attention.

Behavioural Decision Model

An approach to understanding decision-making, focusing on how individuals interpret and respond to information based on psychological and behavioural factors.

Bounded Rationality

A concept that decision-makers are limited in their decision-making capabilities by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.