Brittany Receives a Nonliquidating Distribution of $48,000 Cash from Her

question 136

Multiple Choice

Brittany receives a nonliquidating distribution of $48,000 cash from her partnership.Brittany's basis in her partnership interest prior to the distribution is $25,000.What are the tax consequences of the distribution?

• A)$48,000 ordinary income; $25,000 partnership basis
• B)$48,000 nontaxable return of capital,($23,000)partnership basis
• C)$25,000 nontaxable return of capital,capital gain of $23,000,$0 partnership basis
• D)$25,000 nontaxable return of capital,ordinary income of $23,000,$0 partnership basis

Understand the influence of Piaget's cognitive development theory in educational practices.

Comprehend the key concepts and distinctions between the microsystem, mesosystem, exosystem, macrosystem, and chronosystem in ecological systems theory.

Appreciate the similarities and differences between Piaget's and Vygotsky's theories on child development.

Recognize the ecological approach to addressing societal issues and its importance.

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Definitions:

Future Interest

A person’s present right to property ownership and possession in the future.

Present Right

The current legal ability to exercise a right or claim to property, as opposed to a future or conditional interest.

Property Ownership

The legal right to possess, use, and dispose of real estate or personal property.

Co-ownership Interests

Legal rights and interests held by individuals or entities that own property together, entitling them to use, profit from, or dispose of the property jointly.