Clark and Lewis Are Partners Who Share the Profits and Losses

question 42

Essay

Clark and Lewis are partners who share the profits and losses of the C&L Partnership 60% and 40%, respectively. The tax basis of each partner's interest in the partnership as of December 31 of last year was as follows: Clark, $14,000; Lewis, $12,000. During the current year, the partnership had ordinary income of $20,000 and a long-term capital loss of $10,000 from the sale of securities. The partnership made cash distributions proportionately to the two partners during this year totaling $20,000. What is the amount of Lewis's tax basis of his partnership interest on December 31 of the current year?

Understand the concepts of person-organization fit and its significance in HRM practices.

Recognize the strategic role of HRM in supporting the organizational core values and corporate culture.

Identify the key functions and goals of strategic human resource management in mobilizing human capital.

Understand the specifics of human resource management practices influenced by legal requirements, such as in Canada.

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Definitions:

Decision Made Fairly

A choice or judgment reached through a process that is just, unbiased, and based on equity.

Bad-News Message

A communication designed to convey information that may be disappointing, unfavorable, or unwanted to the recipient in a sensitive and understanding manner.

Reasons Before Bad News

A communication technique where the rationale or reasons for a negative decision or news are provided before the actual bad news, to help the receiver understand the context.

Policy-sensitive Practice

Approaches or methods in a professional or organizational context that are acutely aware of and responsive to existing policies and regulations.