Daniel's Basis in the DAT Partnership Is $135,000 If DAT Has a §754 Election in Place, What Is

question 101

Essay

Daniel's basis in the DAT Partnership is $135,000. DAT distributes its land to Daniel in complete liquidation of his partnership interest. DAT reports the following balance sheet just before the distribution: \begin{array}{c}\begin{array}{lll}\text{Assets:}\\\text{Cash}\\\text{Stock (investment)}\\\text{Land}\\\text{Totals}\\\\\text{Liabilities and capital:}\\\text{Capital - Daniel}\\\quad\text{- Alexandra}\\\quad\text{- Travis}\\\text{Totals}\\\end{array}\begin{array}{lll}\underline{\text { Basis }} \\\mathbf{\$ 110 , 0 0 0} \\\mathbf{240 , 0 0 0} \\\underline{\mathbf{55 , 0 0 0}} \\\underline{\mathbf{\$405 , 0 0 0}} \\\\\\\mathbf{\$135 , 0 0 0} \\\mathbf{135 , 0 0 0} \\\underline{135,000} \\\mathbf{\$ 405 , 0 0 0}\\\end{array}\begin{array}{lll}\underline{\text { FMV }} \\\$ 110,000 \\\underline{110,000} \\\underline{110,000} \\\underline{\$ 330,000}\\\\\\\\\\\\\\end{array}\end{array} If DAT has a §754 election in place, what is the amount of the special basis adjustment resulting from the distribution to Daniel? What is DAT's basis in its remaining assets?

Understand the basic concepts of market structures, including perfect competition and monopoly.

Analyze the impact of monopolies on market outcomes, including prices and quantities.

Calculate consumer surplus, producer surplus, and deadweight loss in both competitive and monopoly markets.

Understand the effects of government intervention in monopolies through regulations such as price ceilings.

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Definitions:

Direct Exporting

A method of entering international markets by selling products directly to customers in another country.

Domestically Produced Goods

Products that are manufactured or produced within the country's borders, as opposed to being imported from abroad.

Intellectual Property

Legal rights that protect original works, inventions, or the appearance of products from unauthorized use by others.

Retail Venue

A place or channel where retail transactions occur, including physical stores, online marketplaces, or pop-up shops.