The SSC Partnership Balance Sheet Includes the Following Assets on December

question 14

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:

Implementation Through Change

The process of applying strategies and plans to modify processes, systems, or behaviors within an organization to achieve desired outcomes.

Operational Focus

The strategic prioritization of operations that are crucial for the success and efficiency of a business.

Implementation by Command

A management style where decisions are made at the top of the organization and communicated down the chain of command for execution.