Bart Has a Partnership Interest with a $32,000 Basis

question 1

Multiple Choice

Bart has a partnership interest with a $32,000 basis. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $9,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , investment land (FMV $7,000, basis $4,000) , and building (FMV $20,000, basis $8,000) . No depreciation recapture applies with respect to the building. The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Bart's basis in the building is

• A)$3,000.
• B)$4,000.
• C)$6,000.
• D)$8,000.

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Definitions:

Self-Disclosure

The act of revealing personal information about oneself to others, which can help in the development of trust and intimacy in interpersonal relationships.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Aggressive Feelings

Emotions characterized by anger or hostility that may result in aggressive behavior towards others or oneself.

Displacement

In psychology, transferring an emotional response from the original source of stress to a safer or more convenient target.