Megan's Basis Was $120,000 in the MYP Partnership Interest Just

question 94

Multiple Choice

Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000) . After the distribution, Megan's bases in the land and inventory are, respectively:

• A)$100,000 (land) and $20,000 (inventory).
• B)$120,000 (land) and $0 (inventory).
• C)$50,000 (land) and $70,000 (inventory).
• D)$40,000 (land) and $80,000 (inventory).
• E)None of the above.

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Definitions:

Absolute Value Inequality

An inequality that involves the absolute value of a variable expression and defines a range of solutions.

Solution

A quantity or array of quantities that solve an equation, inequality, or simultaneous equations.

Absolute Value

The distance of a number from zero on the number line, without considering direction; always a non-negative number.

Set Notation

A systematic way of writing sets, often using curly braces and symbols to define elements and operations on sets.