Before Receiving a Liquidating Distribution, Kathy's Basis in Her Interest $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 5,000 & \$ 12,000 \\\hline\end{array}$$

question 56

Multiple Choice

Before receiving a liquidating distribution, Kathy's basis in her interest in the KLM Partnership is $30,000. The distribution consists of $5,000 in money, inventory having a $1,000 basis to the partnership and a $2,000 FMV, and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000, respectively. What is Kathy's basis in each parcel of land?

• A) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 5,000 & \$ 12,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 3,000 & \$ 9,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 7,059 & \$ 16,941 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 6,000 & \$ 18,000 \\
• \hline
• \end{array}\]

Comprehend the principles of social cognitive theory.

Recognize the humanistic perspective on self and identity.

Grasp the foundational concepts of learning theories in behavior.

Learn about the sociocultural perspective in understanding personality.

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Definitions:

Technical Analysis

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume, to predict future price movements.

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A price level at which a security tends to stop declining because of an influx of buyer demand.

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A finance professional who evaluates investments and identifies trading opportunities by analyzing statistical trends gathered from trading activity.

Price Range

The difference between the highest and lowest selling prices of a good or service in a specific time period, indicative of market volatility or stability.