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:

Simple Routines

Basic, repeatable actions or practices that individuals regularly follow in their daily lives.

Division of Labor

The allocation of different tasks or jobs to different people or groups, usually based on specialization.

Skills

Developed abilities or expertise in specific activities, often acquired through practice and learning, that enable proficient performance.

Jobs

Jobs consist of assigned tasks or roles performed by individuals within an organization or professional context in exchange for compensation.