The XYZ Partnership Owns the Following Assets on December 31

question 80

Multiple Choice

The XYZ Partnership owns the following assets on December 31: A partner has a 20% interest with a basis of $6,000 in XYZ before receiving a liquidating distribution of $10,000 cash. XYZ Partnership has no liabilities. His recognized gain is

• A) $4,000 capital gain.
• B) $3,000 capital gain and $1,000 ordinary income.
• C) $3,000 ordinary income.
• D) $3,000 ordinary income and $1,000 capital gain.

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Unitary Ability

The concept that intellectual capabilities can be represented as a single general ability or factor, often referred to as "g" in intelligence research.

Specialized Abilities

Unique skills or competencies that are highly developed or adapted for specific tasks or environments.

Unitary Phenomenon

A term that suggests a singular or unified event, characteristic, or concept, typically used in science or philosophy to describe something that cannot be divided.