Victor Is a 1/3 Partner in the VRX Partnership with an Outside

question 49

Essay

Victor is a 1/3 partner in the VRX partnership with an outside basis of $156,000 on January 1.Victor sells his partnership interest to Raj on January 1^st for $200,000 cash.The VRX Partnership has the following assets and no liabilities as of January 1:
The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation.The stock was purchased 7 years ago.What is the amount and character of Victor's gain or loss on the sale of his partnership interest?

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Definitions:

Inner Hair Cells

Sensory cells in the cochlea of the ear responsible for converting sound vibrations into electrical signals for the brain to interpret as sound.

Sensorineural Hearing Loss

Sensorineural hearing loss occurs when there is damage to the inner ear (cochlea) or to the nerve pathways from the inner ear to the brain, often leading to difficulty in hearing sound clearly.

Spiral Organ

A structure located within the cochlea of the inner ear, essential for hearing as it transforms sound waves into electrical signals.

Basilar Membrane

A membrane in the cochlea of the inner ear that moves in response to sound, allowing for hearing.