Brittany, Jennifer, and Daniel Are Equal Partners in the BJD

question 120

Multiple Choice

Brittany, Jennifer, and Daniel are equal partners in the BJD Partnership. The partnership balance sheet reads as follows on December 31: $\begin{array}{lrr}&\text { Adjusted } & \\&\text { Basis } & \text { FMV } \\\text { Cash } & \$ 75,000 & \$ 75,000 \\\text { Unrealized receivables } & -0- & 51,000 \\\text { Land } & \underline{45,000} & \underline{63,000} \\\text { Total } & \$ 120,000 & \$ 189,000\\\\\text { Brittany, capital } & \$ 40,000 & \$ 63,000 \\\text { Jennifer, capital } & 40,000 & 63,000 \\\text { Daniel, capital } & 40,000 & 63,000 \\\text { Total } & \$ 120,000 & \$ 189,000\end{array}$ Partner Daniel has an adjusted basis of $40,000 for his partnership interest. If he sells his entire partnership interest to new partner Amber for $73,000 cash, by how much can the partnership step up the basis of Amber's share of partnership assets under §§ 754 and 743b) ?

• A) $6,000
• B) $17,000
• C) $23,000
• D) $33,000
• E) $40,000.

---

Definitions:

MRI

See Magnetic Resonance Imaging.

Neuroanatomy

The study of the structure and organization of the nervous system, including its various parts and how they're interconnected.

Technical Expertise

Specialized knowledge and skills in a specific field or discipline, allowing individuals to perform tasks with a high degree of proficiency.

EEG

Electroencephalogram, a test that measures the electrical activity of the brain using small, flat metal discs attached to the scalp.