The ABC Partnership Owns the Following Assets on December 31

question 100

Multiple Choice

The ABC Partnership owns the following assets on December 31. The indication that ABC owns substantially appreciated inventory is

• A)the total FMV of all assets except cash is greater than their total basis.
• B)the FMV of all assets except land is $90,000 while their bases is $40,000.
• C)the FMV of the inventory is $30,000 while its adjusted basis is $20,000.
• D)the FMV of the inventory and unrealized receivables is $70,000 while their adjusted bases is $20,000.

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Definitions:

Twentieth Century

The period extending from January 1, 1901, to December 31, 2000, marked by significant global events, technological advancement, and cultural shifts.

Canada Health Act

The federal legislation that sets out the conditions by which individual provinces and territories in Canada must comply to receive federal funds for health services.

Portability

The health care insurance plan of a province or territory can set only a limited waiting period for eligibility and must pay the cost of insured health services provided while temporarily absent from the province or territory but within Canada.

Health Coverage

A type of insurance that covers the whole or a part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons.