The VRX Partnership (A Calendar Year-End Entity) Has the Following

question 94

Essay

The VRX Partnership (a calendar year-end entity) has the following assets and no liabilities: $\begin{array}{l}\begin{array}{lrrr}&\underline{Basis}&\underline{FMV}\\\text { Cash }&\$27,000&\$27,000\\\text { Accounts receivable } & -0- & 18,000 \\\text { Inventory } & 103,500 & 121,500 \\\text { Equipment } & \mathbf{2 7 0 , 0 0 0} & \mathbf{3 3 7 , 5 0 0} \\\text { Stock investment } & \underline{67,500} & \underline{62,500} \\\text { Totals } & \underline{\mathbf{\$ 4 6 8 , 0 0 0}} & \underline{\mathbf{\$ 5 6 6 , 5 0 0}}\end{array}\end{array}$ The equipment was purchased for $360,000 and VRX has taken $90,000 of depreciation. The stock was purchased 7 years ago. What are VRX's hot assets for purposes of a sale of partnership interest?

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Definitions:

National Institute for Clinical Excellence (NICE)

A UK-based organization responsible for providing national guidance and advice to improve health and social care.

Low Intensity CBT

A simplified version of Cognitive-Behavioural Therapy that involves less direct contact with a therapist and makes use of self-help resources.

Mindfulness Approaches

Techniques or practices that focus on being intensely aware of what one is sensing and feeling in the moment, without interpretation or judgment.

Present Moment

The current point in time, emphasizing the importance of focusing on the now rather than dwelling on the past or future.