The Crimson Partnership Is a Service Provider

question 82

True/False

The Crimson Partnership is a service provider. Its assets consist of unrealized receivables (basis of $0, fair market value of $400,000), cash of $300,000, and land (basis of $200,000, fair market value of $300,000). Assume 20% general partner Jana has a basis in her partnership interest of $100,000. If the ongoing partnership distributes $200,000 of cash to Jana in liquidation of her interest in the partnership, she will recognize ordinary income of $80,000 and a capital gain of $20,000.

---

Definitions:

Expatriate

An individual who lives outside their native country, often for work reasons.

Ethnocentric

A viewpoint that one's own ethnic group or culture is superior to others, often leading to judgment of other cultures based solely on the values and standards of one's own culture.

International Operations

Business activities that a company conducts outside its home country, involving global management of production, logistics, marketing, and human resources.

Polychronic

Describes a cultural approach to time management that values multitasking and the handling of multiple activities simultaneously.