Barry Owns a 50 Percent Interest in B&B Interests, a Partnership

question 47

Multiple Choice

Barry owns a 50 percent interest in B&B Interests, a partnership. His brother, Benny, owns a 35 percent interest in that same partnership, and the remaining 15 percent is owned by an unrelated individual. During the current year, Barry sells a rental property with a basis of $60,000 to B&B Interests for $100,000. The partnership intends to hold the rental as inventory for resale. What is the amount and nature of Barry's gain or loss on this transaction?

• A)$40,000 long-term capital loss
• B)$0 gain or loss
• C)$40,000 long-term capital gain
• D)$40,000 ordinary income
• E)None of these

---

Definitions:

Specialized Role

A position that requires specific skills or knowledge, focusing on a particular area or task within a larger organization or system.

Leader Behavior

Actions and manners exhibited by someone in a leadership position, influencing how they are perceived and the effectiveness of their leadership.

Group Members

Individuals who are part of a collective that works towards a common goal or share a common interest.

Emotional Basis

The underlying emotional motivations and attachments that influence behavior and decision-making in individuals.