At the End of Last Year, Cynthia, a 20percent Partner

question 34

Multiple Choice

At the end of last year, Cynthia, a 20percent partner in the five-person CYG partnership, has an outside basis of $30,000, including her $15,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $22,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale?

• A)$7,500 capital loss.
• B)$7,500 ordinary loss.
• C)$7,500 capital gain.
• D)$7,500 ordinary income.

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Definitions:

MyPlate

A visual guide created by the USDA to help Americans understand and follow healthy eating patterns, utilizing a plate divided into portions of fruits, vegetables, grains, proteins, and dairy.

Mediterranean Diet

A dietary pattern traditionally followed in countries bordering the Mediterranean sea, emphasizing fruits, vegetables, whole grains, olive oil, and fish.

Olive Oil

A type of oil extracted from olives, highly praised for its health benefits, including heart-healthy monounsaturated fats.

Dietary Guidelines for Americans

A set of recommendations aimed at promoting healthy eating habits and reducing the risk of diet-related diseases among people in the United States.