Eicho's Interest in the DPQ Partnership Is Terminated When Her

question 97

Essay

Eicho's interest in the DPQ Partnership is terminated when her basis in the partnership is $70,000. She receives a liquidating distribution of $20,000 cash and inventory with a $24,000 basis and a $40,000 FMV. She also receives, as part of the distribution, a desk that has a $100 basis and a $200 FMV to the partnership. What is her gain or loss, and what is her basis in the items received?

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Definitions:

Synaptic Cleft

The small gap between neurons across which neurotransmitters are released to transmit signals from one neuron to another.

Axon Terminal

The endpoint of an axon where neurotransmitters are released to send signals to other neurons or muscle cells.

Dendrite

A branched extension of a neuron that receives signals from other neurons or sensory receptors and conducts them toward the cell body.

Myelin Sheath

A fatty layer that surrounds nerve fibers, enhancing the speed and efficiency of electrical signal transmission in the nervous system.