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: $$\begin{array} { | l | r | r | } \hline & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 180,000 & \$ 180,000 \\\hline \text { Accounts receivable } & - 0 - & 60,000 \\\hline \text { Equipment } ( \text { cost } = \$ 100,000 ) & 40,000 & 50,000 \\\hline \text { Land } & 90,000 & 120,000 \\\hline \text { Total } & \underline { \$ 310,000 } & \$ \$ 410,000 \\\hline\end{array}$$ Which of SSC's assets are considered hot assets under §751(a) ?

• A) Cash and accounts receivable.
• B) Cash and land.
• C) Accounts receivable and land.
• D) Accounts receivable and inherent recapture under §1245 in the equipment.

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Definitions:

Agnosia

A neurological condition where a person is unable to recognize and identify objects, persons, sounds, shapes, or smells, despite having the necessary sensory functions.

Aphasia

A condition that impairs a person's ability to process language, affecting speech, writing, and the ability to understand language.

Hallucination

A sensory experience of something that does not exist outside the mind, often seen in psychiatric conditions like schizophrenia.

Tactile

Relating to or perceptible through the sense of touch.