Danielle Has a Basis in Her Partnership Interest of $12,000

question 48

Multiple Choice

Danielle has a basis in her partnership interest of $12,000. She receives a current distribution of $8,000 cash and equipment with a basis of $7,000. There is no potential gain under Sec. 737. What is her basis in the equipment?

• A)$0
• B)$4,000
• C)$7,000
• D)none of the above

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Definitions:

Unconditional Positive Regard

A term used in client-centered therapy signifying total acceptance and support of a person regardless of what they say or do.

Self-help Group

A voluntary association of individuals who share a common condition or problem, supporting each other to cope or improve their situation.

Systematic Desensitization

A behavioral therapy technique used to reduce phobias and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.

Emotional Support

Assistance provided through empathy, concern, and encouragement to help individuals manage and express their emotions.