The SSC, a Cash-Method Partnership, Has a Balance Sheetthat Includes

question 81

Multiple Choice

The SSC, a cash-method partnership, has a balance sheetthat includes the following assets on December 31 of the current year: Susan, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $120,000 cash, how much capital gain and ordinary income must Susan recognize from the sale?

• A)$30,000 ordinary income.
• B)$30,000 capital gain.
• C)$10,000 ordinary income; $20,000 capital gain.
• D)$10,000 capital gain; $20,000 ordinary income.

---

Definitions:

Customized Bikes

Bicycles that are tailored or modified according to the personal preferences, specifications, or requirements of an individual.

Choiceboard

An interactive online system that allows consumers to customize the features or attributes of a product or service they intend to purchase.

Reebok Design

Refers to the distinctive aesthetic and functional elements in footwear and apparel produced by the athletic brand Reebok.

Athletic Shoes

Footwear designed specifically for sports and physical activities, offering varying levels of support, performance, and durability.