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

question 45

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:

Hackman's Authority Matrix Model

A framework that categorizes levels of authority in teams and organizations with respect to decision-making processes, highlighting different ways teams can be structured and empowered.

Level of Autonomy

Refers to the degree of self-governing ability or independence an individual or entity possesses.

Team Learning

The process through which a group improves its collective understanding and capabilities through shared experiences, discussions, and reflections.

Pisano, Bohmer, and Edmondson

Researchers known for their contributions in the field of organizational behavior and learning within organizations, emphasizing the importance of team dynamics and experimentations for innovation.