Tenika Has a $10,000 Basis in Her Interest in the TF

question 88

Multiple Choice

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money,plastic tubes held in inventory with a $3,000 basis to the partnership and an FMV of $3,375,and drip irrigation pipe held as inventory with a $6,000 basis to the partnership and an FMV of $5,000.What is Tenika's basis for the plastic tubes and drip irrigation pipe?

• A) \[\begin{array} { | l | l | }
• \hline \text { Plastic Tubes } & \text { Drip Pipe } \\
• \hline 3,375 & \$ 5,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Plastic Tubes } & \text { Drip Pipe } \\
• \hline \$ 3,000 & \$ 6,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Plastic Tubes } & \text { Drip Pipe } \\
• \hline \$ 3,000 & \$ 5,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Plastic Tubes } & \text { Drip Pipe } \\
• \hline \$ 2,250 & \$ 3,750 \\
• \hline
• \end{array}\]

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Definitions:

Legislature

A governmental body or assembly with the authority to make, amend, or repeal laws.

Revolutionary Commitment

A strong dedication to achieving profound change in societal or political structures, often through activism or rebellion.

Denial

Denial refers to the refusal to accept the truth or reality of a situation or fact.

Justified

Considered to be right or reasonable, often in reference to actions, decisions, or beliefs.