A Partnership's Records Show D's Basis in Her 25% Interest in This Partnership Is

question 16

Multiple Choice

A partnership's records show: $\begin{array}{ll}&\text { Inside Basis }&FMV\\\text { Cash }&\$ 4,000 & \$ 4,000 \\\text { Inventory }&16,000 & 30,000 \\\text { Land }&8,000 & 20,000\\\text { Equipment }&72,000&60,000\\\text { Total assets }&\$100,000&\$114,000\end{array}$ D's basis in her 25% interest in this partnership is $26,000.She receives 25 percent of all partnership assets as a liquidating distribution.Compute D's basis in each distributed asset.

• A)Inventory $4,000, land $2,000, and equipment $18,000
• B)Inventory $4,000, land $5,000, and equipment $16,000
• C)Inventory $4,000, land $3,000, and equipment $18,000
• D)Inventory $4,500, land $2,250, and equipment $19,250
• E)None of the above

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, positing a hierarchy of human needs, from basic physiological needs to self-actualization.

Aesthetic

Pertaining to the nature of beauty, art, and taste, and the creation and appreciation of beauty in the arts and nature.

Genetic Makeup

The complete set of genes or genetic material present in a cell or organism, synonymous with genotype.

Hans Eysenck

A British psychologist best known for his work on intelligence and personality, especially his development of the theory of personality traits.