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:

Detecting Stimulus

The process by which organisms identify and respond to environmental changes or signals.

Recognizing Stimulus

The act of identifying a specific stimulus from a set of similar stimuli, based on prior experience or knowledge.

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from our environment.

Bottom-Up Processing

An approach where perception begins with the stimuli whose reception is made by sensory receptors, leading to higher-level processing.