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.

---

Definitions:

Dewey Decimal System

A proprietary library classification system created by Melvil Dewey in 1876 to organize books by subject.

Real-World Practice

Practical application of theoretical knowledge in real life situations outside of a controlled environment.

New Skills and Knowledge

The acquisition of fresh abilities and understanding required to adapt to new technology, processes, or industry standards.

Emotional Reactions

Immediate responses of feelings to situations, events, or stimuli, varying widely across individuals.