Last Year,Oscar Contributed Nondepreciable Property with a Basis of $40,000

question 55

Multiple Choice

Last year,Oscar contributed nondepreciable property with a basis of $40,000 and a fair market value of $50,000 to the Starling Partnership in exchange for a 25% interest in the partnership.In the current year,he receives a nonliquidating distribution from the partnership of other property with a basis to the partnership of $26,000 and a fair market value of $32,000.The basis in his partnership interest at the time of the distribution was $30,000.How much gain or loss does Oscar recognize on the distribution? (Assume no other distributions have been made to Oscar,the property he originally contributed is still owned by the partnership,and this is not a disguised sale transaction.)

• A)$0 gain or loss.
• B)$2,000 gain.
• C)$10,000 gain.
• D)$18,000 gain.
• E)$4,000 loss.

Determine the appropriate directionality (upper-tailed, lower-tailed, two-sided) of hypothesis tests.

Understand the relationship between sample size and margin of error in confidence intervals.

Comprehend the effect of sample size changes on statistical test outcomes.

Interpret the meaning of p-values in hypothesis testing.

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Definitions:

Interest Rate

Lenders impose a charge, as a percentage of the principal, on borrowers for the use of their assets.

Present Value

The value today of a future money sum or sequence of cash flows, based on a specific interest rate.

Interest Rate

The cost of borrowing money or the return on savings, usually expressed as a percentage.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposited funds.