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:

Sex Discrimination

Unfair treatment of individuals based on their sex or gender, often manifesting in areas such as employment, education, and healthcare.

Heterosexism

A system of attitudes, bias, and discrimination in favor of opposite-sex sexuality and relationships, often marginalizing non-heterosexual behaviors, identities, and communities.

Oppression

A system of discrimination and exclusion that prevents individuals or groups from having equal rights, opportunities, and treatment.

Gender-typing

involves the process through which individuals come to possess behaviors, attitudes, and traits that are generally considered appropriate for their gender in a cultural context.