Roberto Is a Partner in a Continuing Partnership

question 3

Multiple Choice

Roberto is a partner in a continuing partnership.At the end of the current year, the partnership distributed to Roberto in a proportionate, nonliquidating distribution cash of $50,000, inventory with a basis to the partnership of $45,000 and a fair market value of $60,000, and a parcel of land with a basis to the partnership of $120,000 and a fair market value of $80,000.Roberto's basis in the partnership interest was $240,000 before the distribution.What basis does Roberto take in the inventory and land, and what is his basis in the partnership interest following the distribution?

• A)$45,000 basis in inventory; $80,000 basis in land; $65,000 basis in partnership.
• B)$45,000 basis in inventory; $120,000 basis in land; $25,000 basis in partnership.
• C)$60,000 basis in inventory; $80,000 basis in land; $50,000 basis in partnership.
• D)$60,000 basis in inventory; $120,000 basis in land; $10,000 basis in partnership.
• E)$60,000 basis in inventory; $120,000 basis in land; $0 basis in partnership.

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Definitions:

Determination of Parties

The process of identifying and defining the entities or individuals involved in a legal agreement or dispute.

Ethical Intensity

The degree of importance or significance given to an ethical issue, influenced by factors such as potential outcomes and social consensus.

Sexually Harassed

Experiencing unwanted sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature in a work or professional setting.

Ethical Intensity

The degree of importance or impact that an ethical issue has on the stakeholders, which is determined by various factors including potential harm or benefits.