On December 1, Antonio, a Member of a Three-Person Partnership

question 39

Multiple Choice

On December 1, Antonio, a member of a three-person partnership, purchases investment securities from the partnership for their $37,000 FMV. All partners share profits and losses equally. The securities were acquired by the partnership for $25,000 cash in March of the current year. What amount and character of gain will Antonio recognize because of this transaction?

• A)$0 gain
• B)$4,000 ordinary income
• C)$4,000 short-term capital gain
• D)$12,000 ordinary income

---

Definitions:

Activity Theory

A theory that suggests staying mentally and physically active contributes to happiness and satisfaction in later life.

Mortality Rate

The measure of the frequency of occurrence of death in a defined population during a specified interval of time.

Structural Changes

Structural changes refer to significant alterations within an organization, economy, or any other system that reshapes its framework, functioning or nature.

Depression

A mental health disorder characterized by persistent feelings of sadness, loss, or anger, interfering with daily functioning.