David Sells His One- Third Partnership Interest to Diana for $60,000

question 33

Essay

David sells his one- third partnership interest to Diana for $60,000 when his basis in the partnership interest is
$48,000. On the date of sale, the partnership has no liabilities and the following assets: $\begin{array}{lcc}\text { Assets } & \text { Basis } & \text { FMV } \\\text { Cash } & \$ 40,000 & \$ 40,000\\\text { Inventory } & 18,000 & 27,000 \\\text { Building } & 75,000 & 102,000 \\\text { Land } & 11,000 & 11,000\end{array}$ The building is depreciated on a straight- line basis. What tax issues should David and Diana consider with resp to the sale transaction?

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Definitions:

Oculomotor Nerve

The third cranial nerve, responsible for controlling most of the eye's movements and pupil constriction.

Patient Look

The appearance or demeanor of a patient, often considered in a clinical context to assist in diagnosis or gauge well-being.

Superiorly and Inferiorly

Terms used to describe a position above (superiorly) or below (inferiorly) a reference point in the body.

Sternocleidomastoid

A major muscle in the neck that facilitates various movements, including rotation and flexion of the head.