The SSC Partnership Balance Sheet Includes the Following Assets on December

question 76

Multiple Choice

The SSC Partnership balance sheet includes the following assets on December 31 of the current year: $\begin{array} { l r r } &{ \text { Basis } } & \text { FMV } \\\text { Cash } & \$ 180,000 & \$ 180,000 \\\text { Accourts receivable } & - 0 - & 60,000 \\ \text { Lard } & \underline {90,000} & \underline {120,000} \\\text { Total } & \underline {\$ 270,000} & \underline {\$ 360,000}\end{array}$ 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:

Interstitial Cell

Cells located in the spaces between the organs or tissues of the body, often referring to cells in the testes that produce testosterone or in various other tissues for support and repair.

Spermatogonium

A male germ cell from which sperm cells are derived, undergoing several stages of division before becoming mature sperm.

Developing Sperm

Developing sperm, or spermatogenesis, is the process during which spermatogonial stem cells divide and differentiate into mature spermatozoa in the testes.

Sperm

Sperm are male reproductive cells responsible for fertilizing the female ovum, leading to pregnancy.