Logan's Basis in His Partnership Interest Is $20,000 When He

question 77

Multiple Choice

Logan's basis in his partnership interest is $20,000 when he receives a pro rata nonliquidating distribution from the partnership of $22,000 cash and inventory with a basis of $2,000 and fair market value of $3,000.What is Logan's recognized gain on this distribution?

• A)0
• B)$2,000
• C)$3,000
• D)$4,000

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Definitions:

Victimization

The process of being made a victim through harmful actions such as abuse, exploitation, or violence.

Sympathy

Sympathy is the feeling of pity, compassion, or sorrow for the misfortunes or suffering of others.

Resentment

Persistent feelings of bitterness or ill will towards someone or something perceived as having caused harm or injustice.

Counter-Revenge

Actions or strategies designed to neutralize or respond to acts of revenge, aiming to de-escalate a conflict.