Anthony's Basis in the WAM Partnership Interest Was $200,000 Just

question 62

Multiple Choice

Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000) , and inventory (basis of $30,000, fair market value of $70,000) .After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

• A)$80,000 loss; $90,000 (land); $30,000 (inventory).
• B)$70,000 loss; $100,000 (land); $30,000 (inventory).
• C)$30,000 loss; $100,000 (land); $70,000 (inventory).
• D)$0 gain or loss; $170,000 (land); $30,000 (inventory).
• E)None of the above.

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Definitions:

Constant Stimulus

A static or unchanging factor in an experimental setup used to evoke a response in participants, allowing for the measurement of psychological or physiological reactions.

Comfortable Position

A physical stance or posture in which one feels relaxed, at ease, and free from pain or stress.

Humour In Stress

Utilizing humor as a coping mechanism to alleviate the effects of stress.

Defence Mechanism

Unconscious mental tactics employed by people to defend themselves against anxiety or to escape from situations they are unable to deal with at the moment.