Zayde Is a One-Third Partner in the ARZ Partnership, with an Outside

question 8

Essay

Zayde is a one-third partner in the ARZ Partnership, with an outside basis of $156,000 on January 1. Zayde sells his partnership interest to Thomas on January 1 for $180,000 cash. The ARZ Partnership has the following assets and no liabilities as of January 1:
The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased three years ago. What is the amount and character of Zayde's gain or loss on the sale of his partnership interest?

---

Definitions:

Teams Competency

The collective knowledge, skills, and abilities that contribute to a team's ability to achieve its goals effectively.

Individualism/Collectivism

A cultural dimension that describes whether people in a society are integrated into strong, cohesive in-groups (collectivism) or act as independent, self-reliant individuals (individualism).

Conflict

A serious disagreement or argument, typically a protracted one, which can occur between individuals, groups, or nations.

Motive

A reason for doing something, especially one that is hidden or not obvious.