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 1st 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?
Definitions:
Financial Accounting Standards
Rules and guidelines developed by authoritative entities to govern how financial statements should be prepared and presented.
IASB
The International Accounting Standards Board, an independent body that develops and approves International Financial Reporting Standards (IFRS).
AICPA
The American Institute of Certified Public Accountants, a professional organization for certified public accountants in the United States.
SEC
Stands for the Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.
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