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

question 91

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: $$\begin{array} { l r r } & \underline { \text { Basis } } & \underline { \text { FMV } } \\\text { Cash } & \$ 27,000 & \$ 27,000 \\\text { Accounts receivable } & - \mathbf { 0 }- & \mathbf { 1 8 , 0 0 0 } \\\text { Inventory } & \mathbf { 1 0 3 , 5 0 0 } & \mathbf { 1 2 1 , 5 0 0 } \\\text { Equipment } & \mathbf { 2 7 0 , 0 0 0 } & \mathbf { 3 3 7 , 5 0 0 } \\\text { Stock investment } & \underline { \mathbf { 6 7 , 5 0 0 } } & \underline { \mathbf { 9 6 , 0 0 0 } } \\\text { Totals } & \underline { \mathbf { \$ 4 68 , 0 0 0 } } & \underline { \$ 600,000 }\end{array}$$ 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:

High Comorbidity

The presence of two or more disorders or illnesses occurring in the same person, often interacting in a way that worsens the course of both.

Post-Traumatic Stress Disorder

A mental health condition triggered by witnessing or experiencing a terrifying event, leading to long-term stress reactions and anxiety.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states.

Voices In Head

An experience where an individual hears voices without an external stimulus, often associated with certain mental health conditions.