In a Proportionate Liquidating Distribution, WYX Partnership Distributes to Partner

question 21

True/False

In a proportionate liquidating distribution, WYX Partnership distributes to partner William cash of $40,000, cash basis accounts receivable (basis of $0, fair market value of $10,000), and land (basis of $30,000, fair market value of
$50,000). William's basis was $80,000 before the distribution. On the liquidation, William recognizes a $20,000 gain, and he takes a basis of $10,000 in the accounts receivable and $50,000 in the land.

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Definitions:

Psychological Problems

Mental health issues that can affect a person's thinking, feeling, mood, and behavior, being potentially chronic or acute and influencing one's ability to function day-to-day.

Binge Eating Disorder

A condition involving frequent instances where one consumes vast amounts of food rapidly, leading to a feeling of discomfort.

Restrictive Dieting

A dietary approach that significantly limits food intake or types of food, often for weight loss or health-related reasons.

Mood Swings

Significant fluctuations in a person's mood, such as going from feeling euphoric or extremely happy to suddenly feeling very sad or down.