At the End of Last Year, Cynthia, a 20% Partner

question 34

Multiple Choice

At the end of last year, Cynthia, a 20% partner in the five-person CYG partnership, has an outside basis of $30,000 including her $15,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $22,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale?

• A) $7,500 capital loss.
• B) $7,500 ordinary loss.
• C) $7,500 capital gain.
• D) $7,500 ordinary income.

Distinguish between various types of usability evaluation methods and data.

Understand the definition and classification of IQ scores, including identifying scores for giftedness and mental retardation.

Comprehend the importance and process of standardization, norms, and reliability in psychological testing.

Recognize the historical and contemporary explanations for variations in IQ scores, including the Flynn effect.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and its expected cost, based on standard rates and hours.

Standard Hours Allowed

The predetermined amount of time expected to be required to complete a unit of work, used as a benchmark in costing and efficiency analysis.

Excel Spreadsheet

A digital worksheet or grid in Microsoft Excel, where users can organize data, perform calculations, and analyze information.

Clearing Account

An account used to temporarily hold transactions in progress or to reconcile discrepancies before the amounts are posted to the correct accounts.