In Complete Liquidation PW Distributes the Cash to Pamela and the Unrealized

question 63

Multiple Choice

In complete liquidation PW distributes the cash to Pamela and the unrealized receivables to Wade(equal partners) . Pamela and Wade each have an outside basis in PW equal to $5,000. PWhas no liabilities at the time of the liquidation. What is the amount and character ofPamela's recognized gain or loss?

• A) $0.
• B) $2,500 capital gain and $2,500 ordinary income.
• C) $5,000 ordinary income.
• D) $5,000 capital gain.

Identify the types and sources of law in the United States.

Understand the principle of stare decisis and its importance in the legal system.

Distinguish between criminal and civil law.

Recognize the difference between equitable remedies and remedies at law.