Mariana Is a Partner in the Benson Partnership

question 16

Multiple Choice

Mariana is a partner in the Benson Partnership. At the close of the current year, Mariana's basis in the partnership is $23,000. At that time, the partnership distributes cash of $6,000 and property with a basis of $4,000 and a fair market value of $7,000 to each partner. What amount must Mariana report as income from the distribution in the current year?

• A)$- 0 -
• B)$4,000
• C)$6,000
• D)$10,000
• E)$13,000

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Definitions:

Passionate

Showing or caused by strong feelings or a strong belief.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Instinctive

Relating to or denoting behaviors that are innate and automatic, performed without being based on prior experience or external cues.

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An ongoing process that involves gaining and modifying information, beliefs, and skills through experience, instruction, or practice.