Misha Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 92

Multiple Choice

Misha receives a proportionate nonliquidating distribution when the basis of his partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000) . How much gain or loss does Misha recognize, and what is his basis in the distributed inventory and in the partnership interest following the distribution?

• A)$0 gain or loss; $10,000 basis in inventory; $0 basis in partnership interest.
• B)$0 gain or loss; $20,000 basis in inventory; $50,000 basis in partnership interest.
• C)$20,000 capital gain; $0 basis in inventory; $0 basis in partnership interest.
• D)$20,000 capital gain; $10,000 basis in inventory; $0 basis in partnership interest.
• E)$20,000 ordinary income; $0 basis in inventory; $20,000 basis in partnership interest.

Recognize the importance of mutual trust and commitment between management and employees for effective operations.

Comprehend the benefits and applications of work sampling and time studies in measuring work performance.

Understand the significance of flexibility in work schedules for operational efficiency and employee satisfaction.

Grasp the implications of employment stability policies on workforce management and organizational performance.

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Definitions:

Withhold Access

The act of denying or restricting availability to certain resources, information, or locations.

Information

Data, facts, or details that are provided or learned about something or someone.

Legitimate Authority

Power that is recognized and accepted by others as rightful and proper within a social or organizational structure.

Polite Requests

Expressions used to make solicitations in a courteous and respectful manner.