Derrick's Interest in the DEF Partnership Is Liquidated When His

question 61

Multiple Choice

Derrick's interest in the DEF Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Derrick will recognize

• A)no gain or loss.
• B)$2,000 capital loss.
• C)$2,000 ordinary loss.
• D)$10,000 capital loss and $20,000 ordinary loss.

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Definitions:

Patient-Visits

A measure in healthcare indicating the number of individual patient interactions or consultations with healthcare professionals.

Personnel Expenses

Costs associated with employing personnel, including salaries, benefits, and payroll taxes.

Planning Budget

A budget prepared before the beginning of a financial period as a plan for earning and spending, based on expected activities and conditions.

Selling

The process of promoting and transferring ownership of a product or service to customers in exchange for money or value.