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

question 78

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 1ˢᵗ for $200,000 cash.The VRX Partnership has the following assets and no liabilities as of January 1:
$\begin{array} { l r r r } & \text { Basis } & \text { FMV } \\\text { Cash } & \$ 27,000 & \$ 27,000 \\\text { Accourts receivable } & - 0 - & 18,000 \\\text { Inventory } & 103,500 & 121,500 \\\text { Equipment } & 270,000 & 337,500 \\\text { Stock irvestrnent } & \underline { 67,500} & \underline { 96,000 }\\\text { Totals } & \underline { \$ 468,000 }& \underline { \$ 600,000}\end{array}$ 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:

Retrograde Amnesia

A form of amnesia in which an individual loses memories for events that occurred prior to the cause of the amnesia.

Sins of Memory

Errors or distortions in the recall of memories, including forgetting, misattribution, and suggestibility, among others.

Eyewitness Testimony

Evidence provided by individuals who were present at the scene of a crime or event, recounting their observations.

Memory Processing

The complex process of encoding, storing, and retrieving information in the brain.