Bart Has a Partnership Interest with a $32,000 Basis

question 37

Multiple Choice

Bart has a partnership interest with a $32,000 basis. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $9,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , investment land (FMV $7,000, basis $4,000) , and building (FMV $20,000, basis $8,000) . No depreciation recapture applies with respect to the building. The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Bart's basis in the building is

• A) $4,000.
• B) $3,000.
• C) $8,000.
• D) $6,000.

---

Definitions:

Registered Members

Individuals or entities that have completed a registration process to become officially affiliated with or recognized by an organization, program, or website.

Stanley Milgram

A social psychologist known for his research on obedience, demonstrating how people are willing to follow orders given by authority figures, even to the extent of harming others.

Shock Studies

Research experiments that involve delivering electrical shocks to subjects to understand behavior and learning.

Obedience

Obedience is a form of social influence where an individual acts in response to a direct order from another individual, who is usually an authority figure.