A Partnership's Records Show D's Basis in Her Interest in This Partnership Is $18,000

question 3

Multiple Choice

A partnership's records show: $\begin{array}{ll}&\text { Inside Basis }&FMV\\\text { Cash }&\$ 4,000 & \$ 4,000 \\\text { Inventory }&16,000 & 30,000 \\\text { Land }&8,000 & 10,000\\\text { Equipment }&72,000&60,000\\\text { Total assets }&\$100,000&\$104,000\end{array}$ D's basis in her interest in this partnership is $18,000.She receives 20 percent of all partnership assets as a current distribution.D's basis for the equipment is

• A)$12,000
• B)$12,400
• C)$13,500
• D)$14,400

---

Definitions:

Clawback Provisions

Agreements that allow companies to retrieve all or part of an employee's compensation under certain conditions, such as misconduct or performance failures.

CEO Pay

The compensation package, including salary, bonuses, and benefits, given to the Chief Executive Officer of a company.

Pay-for-Performance

A compensation strategy where employee pay is directly linked to their performance, productivity, or achievement of certain targets.

Executive Compensation

The payment and benefits package given to top management and executives in a company, which may include salary, bonuses, stock options, and other perks.