Before Receiving a Liquidating Distribution,Kathy's Basis in Her Interest in the KLM

question 41

Multiple Choice

Before receiving a liquidating distribution,Kathy's basis in her interest in the KLM Partnership is $30,000.The distribution consists of $5,000 in money,inventory having a $1,000 basis to the partnership and a $2,000 FMV,and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000,respectively.What is Kathy's basis in each parcel of land?

• A) \[\begin{array} {| l| l | }
• \hline\text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 5,000 & \$ 12,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 3,000 & \$ 9,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 7,059 & \$ 16,941 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Parcel One } & \text { Parcel Two } \\
• \hline \$ 6,000 & \$ 18,000 \\
• \hline
• \end{array}\]

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Definitions:

Accumulated Count

A tally or total that increases over time, often used in various applications such as counting events, objects, or the amount of a substance processed.

Light

A form of electromagnetic radiation visible to the human eye, and the medium through which human beings can perceive the world visually.

True

"As related to programmable logic controller instructions, an on, enabled, or 1 state."

GREATER THAN OR EQUAL

A relational operator that checks if the value on the left side is greater than or equal to the value on the right side, often used in programming and mathematics.