On December 1, Antonio, a Member of a Three-Person Partnership

question 39

Multiple Choice

On December 1, Antonio, a member of a three-person partnership, purchases investment securities from the partnership for their $37,000 FMV. All partners share profits and losses equally. The securities were acquired by the partnership for $25,000 cash in March of the current year. What amount and character of gain will Antonio recognize because of this transaction?

• A)$0 gain
• B)$4,000 ordinary income
• C)$4,000 short-term capital gain
• D)$12,000 ordinary income

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Definitions:

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Strategies and practices by which a country extends its power and dominion, often through military force or by gaining political and economic control of other areas.