Tony Sells His One- Fourth Interest in the WindyCity Partnership

question 54

Essay

Tony sells his one- fourth interest in the WindyCity Partnership to Bill for $100,000 cash when the partnership's assets are as follows: $$\begin{array} { | l | r | c | } \hline { \text { Assets } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Cash } & \$ 80,000 & \$ 80,000 \\\text { Unrealized receivables } & 0 & 72,000 \\\text { Inventory } & 80,000 & 184,000 \\\text { Land } & \underline { 80,000 } & 64,000 \\\text { Total } & \underline { \$ 240,000 } & \$ \$ 00,000 \\\hline\end{array}$$ The partnership has no liabilities on the sale date. Tony's basis in his partnership interest on the date of the sale is $60,000. What are the amount and character of Tony's gain?

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Definitions:

Social Control Solutions

Strategies or measures implemented to regulate behavior and maintain conformity to societal norms.

Victims

are individuals who suffer harm, injury, or loss as a result of a crime, accident, or other event or action.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Death Penalty

The death penalty, or capital punishment, is a government-sanctioned practice whereby a person is executed as a punishment for a crime.