Mercedes Owns a 30% Interest in Magenta Partnership (Basis of $52,000)

question 120

True/False

Mercedes owns a 30% interest in Magenta Partnership (basis of $52,000) which she sells to Calvin for $65,000. Mercedes' recognized gain of $13,000 will be classified as capital gain.

---

Definitions:

Noncomparable

A noncomparable item or situation is one that cannot be fairly compared to another due to distinctive differences.

Data Sets

Collections of related sets of information that are composed of separate elements but can be manipulated as a unit by a computer.

Objective Quality

Objective quality relates to measurable or quantifiable aspects of something, based on impartial criteria or standards rather than personal opinions.

Unbiased Approach

A method or standpoint that is impartial, not influenced by personal feelings or opinions in considering and representing facts.