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In a proportionate liquidating distribution, RST Partnership distributes to partner Riley cash of $30,000, accounts receivable (basis of $0, fair market value of $40,000), and land (basis of $65,000, fair market value of $50,000). Riley's basis was $40,000 before the distribution. On the liquidation, Riley recognizes a gain of $0, and her basis is
$10,000 in the land and $0 in the accounts receivable.
Just Society
A societal ideal that emphasizes fairness, equity, and justice for all its members, aiming to protect individual rights while ensuring communal responsibility.
Moral Development
The process through which individuals develop proper attitudes and behaviors towards other people in society, based on social and cultural norms, rules, and laws.
Kohlberg's Model
A theory of moral development proposed by Lawrence Kohlberg, consisting of six stages grouped into three levels, that explains how individuals evolve in their moral reasoning.
Individualistic Viewpoints
Perspectives that emphasize the importance of personal independence and the rights of individuals over the collective or group.
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