Frank Receives a Proportionate Current (Nonliquidating) Distribution from the AEF

question 155

Multiple Choice

Frank receives a proportionate current (nonliquidating) distribution from the AEF Partnership. The distribution consists of $10,000 cash and property (adjusted basis to the partnership of $54,000 and fair market value of $60,000) . Immediately before the distribution, Frank's adjusted basis in the partnership interest was $50,000. His basis in the noncash property received is:

• A) $0.
• B) $40,000.
• C) $50,000.
• D) $54,000.
• E) $60,000.

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Definitions:

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The collection of components that connect a vehicle to its wheels, providing stability, handling, and comfort by absorbing and dampening shock.

ASE T5

A certification exam conducted by the National Institute for Automotive Service Excellence, specifically focusing on the diagnosis, service, and repair of medium/heavy duty suspension and steering systems.

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Auxiliary braking device used to supplement the service brakes; in most cases these convert chassis kinetic energy into hydraulic or electrical energy and are located in the driveline. Distinct from engine or transmission retarders.

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A security device that locks the kingpin of a semi-trailer to prevent unauthorized coupling or theft of the trailer.