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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Definitions:

Air Gun

A tool that uses compressed air to project force, often used for nailing, painting, or cleaning applications.

Ratchet

A mechanical device that allows continuous linear or rotary motion in one direction while preventing motion in the opposite direction.

IFI Fastener

An IFI fastener refers to a fastening device that adheres to standards set by the Industrial Fasteners Institute, often indicating a specific quality or dimensional guideline.

Radial Marks

Visible lines or marks on a component, such as a brake disc, indicating radial movement or stress which may suggest potential failure points.