Laura Is a Real Estate Developer and Owns Property That

question 85

True/False

Laura is a real estate developer and owns property that is treated as inventory (not a capital asset) in her business.
She contributes a parcel of this land (basis of $15,000) to a partnership, also to be held as inventory. The fair market value of the property is $12,000 at the contribution date. After three years, the partnership sells the land for $10,000. The partnership will recognize a $5,000 ordinary loss on sale of the property.

---

Definitions:

Acetaldehyde

A colorless volatile compound with a pungent odor, used in the manufacture of acetic acid, perfumes, and flavors.

Deprotonated

Refers to the removal of a proton (H+) from a molecule, resulting in the formation of a negatively charged ion.

Resonance

A phenomenon in chemistry where a molecule or ion can be represented by two or more equivalent structures, indicating the delocalization of electrons.

Anion

A negatively charged ion, which has more electrons than protons.