Partnership Records Show R Is a 50 Percent Partner

question 10

Multiple Choice

Partnership records show: $\begin{array}{ll}&\text { Inside Basis }&FMV\\\text { Inventory }&\$12,000 & \$28,000 \\\text { Land }&48,000 & 70,000\\\text { Equipment }&32,000&42,000\\\text { Total assets }&\$92,000&\$140,000\end{array}$ R is a 50 percent partner.The equipment has $10,000 of § 1245 recapture potential.R and her partner each received a distribution from the partnership of a one-half interest in the land.If R's predistribution outside basis was $46,000, R's recognized gain is:

• A)$0
• B)$5,000 ordinary gain
• C)$5,000 capital gain
• D)$20,000 ordinary gain
• E)$20,000 capital gain

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Definitions:

Interpersonal Group Therapy

A form of therapy focusing on the interactions and relationships among group members, to address and improve mental health issues.

Psychodrama

A form of therapy where people act out their experiences and emotions as part of a group to achieve catharsis or insight.

Storming Stage

The second phase in the Tuckman's stages of group development, characterized by conflict and competition as group members come to terms with their roles.

Psychoanalytic Group Therapy

A therapeutic approach where group members explore their unconscious thoughts and feelings through interactions, facilitated by psychoanalytic principles.