Martha Is a 40% Partner in the MMM Partnership with an Outside

question 65

True/False

Martha is a 40% partner in the MMM Partnership with an outside basis of $50,000. MMM distributes $40,000 cash and accrual basis accounts receivable with a basis and fair market value of $20,000. Martha does not recognize gain or loss on the distribution and takes a basis in the cash of $40,000 and a basis in the receivables of $10,000.

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Definitions:

Ethology

The scientific study of animal behavior, often with a focus on behavior under natural conditions, and viewing behavior as an evolutionarily adaptive trait.

Frustration-Aggression Hypothesis

Originally the idea that aggression is always preceded by frustration and that frustration inevitably leads to aggression. Revised to suggest that frustration produces an emotional readiness to aggress.

Emotional Readiness

An individual's preparedness to experience, manage, and appropriately express emotions in a given situation or in response to specific challenges.

Frustration

A feeling of disappointment and dissatisfaction arising from the hindrance of achieving a goal.