Randolph Is a 30percent Partner in the RD Partnership

question 2

Multiple Choice

Randolph is a 30percent partner in the RD Partnership. On January 1, RD distributes $26,000 cash to Randolph in complete liquidation of his interest. RD has only capital assets and no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $37,000. What is the amount and character of Randolph's gain or loss on the distribution?

• A)$0 gain or loss.
• B)$11,000 capital gain.
• C)$11,000 ordinary income.
• D)$11,000 capital loss.

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Definitions:

Unemployment Rate

The ratio of the entire labor pool that is jobless yet actively searching for work and prepared to start working.

Fed

The Federal Reserve System, which is the central bank of the United States, responsible for the nation's monetary policy.

Inflation

The velocity at which the general cost of goods and services surges, thereby diminishing the purchasing capacity.

Output

The amount of something produced by a person, machine, or industry.