The SSC Partnership Balance Sheet Includes the Following Assets on December

question 97

Multiple Choice

The SSC Partnership balance sheet includes the following assets on December 31 of the current year: Susan,a 1/3 partner,has an adjusted basis of $90,000 for her partnership interest.If Susan sells her entire partnership interest to Emma for $120,000 cash,how much capital gain and ordinary income must Susan recognize from the sale?

• A) $30,000 ordinary income.
• B) $30,000 capital gain.
• C) $10,000 ordinary income; $20,000 capital gain.
• D) $10,000 capital gain; $20,000 ordinary income.

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Definitions:

Assessment

The process of evaluating or estimating the nature, quality, or ability of someone or something through tests and observations.

Ritual Closure

The act of formally ending a process or event, often with a specific action or ceremony.

Emotional Exhaustion

A state of feeling extremely fatigued or drained due to accumulated stress from emotional demands.

Uncertain Loss

A form of grief or mourning related to a loss that lacks clarity or closure, making it difficult for individuals to process and move forward.