The XYZ Partnership Owns the Following Assets on December 31

question 61

Multiple Choice

The XYZ Partnership owns the following assets on December 31: A partner has a 20% interest with a basis of $6,000 in XYZ before receiving a liquidating distribution of $10,000 cash.XYZ Partnership has no liabilities.His recognized gain is

• A)$4,000 capital gain.
• B)$3,000 capital gain and $1,000 ordinary income.
• C)$3,000 ordinary income.
• D)$3,000 ordinary income and $1,000 capital gain.

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Definitions:

Specific Anxieties

Fears or phobias that are focused on particular situations, objects, or activities.

Transference

A phenomenon in psychotherapy where a client projects feelings and attitudes from a past relationship onto the therapist.

Behavioral Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and reinforcement.

Placebo Effect

A beneficial effect produced by a placebo drug or treatment, which cannot be attributed to the properties of the placebo itself, and must therefore be due to the patient's belief in that treatment.