Victor Is a 1/3 Partner in the VRX Partnership with an Outside

question 24

Short Answer

Victor is a 1/3 partner in the VRX partnership with an outside basis of $156,000 on January 1.Victor sells his partnership interest to Raj on January 1st for $200,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 7 years ago. What is the amount and character of Victor's gain or loss on thesale of his partnership interest?

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Definitions:

Phosphate

A chemical compound containing the phosphate ion, involved in energy transfer and storage in biological systems.

Backbone

The spine or vertebral column; a series of connected bones or vertebrae that provide structural support and protection to the spinal cord in vertebrates.

Griffith's Transformation

Griffith's transformation experiment demonstrated that bacteria can take up foreign DNA from their environment and express its genetic information, a foundational experiment in molecular biology.

R-strain Bacteria

A type of bacteria distinguished by its rough appearance due to the absence of a polysaccharide capsule, often used in studies of bacterial transformation.