Carlos Has a Basis in His Partnership Interest of $30,000

question 70

Multiple Choice

Carlos has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , land held as an investment (FMV $7,000, basis, $6,000) , and building (FMV $21,000, basis $9,000) . The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Carlos's basis in the building is

• A)$2,500.
• B)$6,000.
• C)$7,500.
• D)$9,000.

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Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Profitability

A measure of how effectively a company generates profit compared to its revenue. It's an indicator of financial health and efficiency.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

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