Derrick's Interest in the DEF Partnership Is Liquidated When His

question 61

Multiple Choice

Derrick's interest in the DEF Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Derrick will recognize

• A)no gain or loss.
• B)$2,000 capital loss.
• C)$2,000 ordinary loss.
• D)$10,000 capital loss and $20,000 ordinary loss.

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Definitions:

Participant Observation

A qualitative research method in which the researcher immerses themselves in a community or group to observe behaviors and interactions from an insider perspective.

Cultural Group

A group of people who share common cultural characteristics, such as language, practices, customs, and heritage.

Primatology

The scientific study of primates, including their behavior, biology, evolution, and ecology.

Fossil Primates

Prehistoric members of the primate order found as fossils, which provide insights into the evolution and development of modern primates, including humans.