Anthony's Basis in the WAM Partnership Interest Was $200,000 Just

question 62

Multiple Choice

Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000) , and inventory (basis of $30,000, fair market value of $70,000) .After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

• A)$80,000 loss; $90,000 (land); $30,000 (inventory).
• B)$70,000 loss; $100,000 (land); $30,000 (inventory).
• C)$30,000 loss; $100,000 (land); $70,000 (inventory).
• D)$0 gain or loss; $170,000 (land); $30,000 (inventory).
• E)None of the above.

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Definitions:

Dodd-Frank Act

A comprehensive piece of financial reform legislation passed in 2010 in the United States, aimed at reducing risks in the financial system.

Proxy Solicitations

Efforts to collect proxy votes from shareholders to influence decisions at shareholder meetings.

Binding Vote

A vote that obligates the involved parties to adhere to the decision or outcome of that vote.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.