John Has a Basis in His Partnership Interest of $30,000

question 85

Multiple Choice

John 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) , and investment land (FMV $7,000, basis $6,000) . The partners' relative interest in the Sec. 751 assets do not change as a result of the current distribution. His basis in the land is

• A)$5,000.
• B)$6,000.
• C)$7,000.
• D)$10,000.

---

Definitions:

Consent of the Governed

A political concept that suggests government's legitimacy and moral right to use state power is only justified and lawful when consented to by the people or society over which that power is exercised.

Breaking with Britain

Breaking with Britain describes the process by which the thirteen American colonies severed their political connections and allegiances to Great Britain, eventually leading to the American Revolutionary War and the establishment of the United States.

Militia Training

The process of training non-professional soldiers, usually civilians, in military techniques, often for self-defense or local protection purposes.

Continental Army

The army raised by the Second Continental Congress in 1775, under the command of General George Washington, to fight against British forces during the American Revolutionary War.