Bao Had Investment Land That He Purchased in 1990 for $80,000

question 43

Multiple Choice

Bao had investment land that he purchased in 1990 for $80,000. Two years ago, when the land was contributed to a partnership, the FMV was $50,000. The land is inventory in the hands of the partnership. The partnership then sells the land in the current year for $46,000. The partnership's recognized loss is

• A)a $34,000 capital loss.
• B)a $34,000 ordinary loss.
• C)a $30,000 capital loss and a $4,000 ordinary loss.
• D)a $4,000 capital loss and a $30,000 ordinary loss.

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Definitions:

Maternal Leave

A period of authorized absence from work for a mother before and after giving birth to care for her newborn; also known as maternity leave.

Group Structure

Division of a group into different roles that often differ with respect to status and prestige.

Ethnomethodology

A sociological perspective that studies the methods people use to understand and produce the social order in which they live.

Behavioral Prescriptions

Specific guidelines or recommendations for how individuals should behave in particular situations or contexts.