Ten Years Ago, Latesha Acquired a One-Third Interest in Dana

question 53

Multiple Choice

Ten years ago, Latesha acquired a one-third interest in Dana Associates, a partnership, for $26,000 cash. This year, Latesha's entire interest in the partnership is liquidated when her basis is $24,000. Dana's assets consist of the following: cash, $20,000; inventory with a basis of $46,000 and an FMV of $40,000. Dana has no liabilities. Latesha receives the cash of $20,000 in liquidation of her entire interest. What is Latesha's recognized loss on the liquidation of her interest in Dana?

• A)$0
• B)$4,000 long-term capital loss
• C)$4,000 short-term capital loss and $2,000 ordinary loss
• D)$4,000 long-term capital loss and $2,000 ordinary loss

Analyze how monopolists maximize profits by setting output levels where marginal revenue equals marginal cost.

Recognize the absence of a traditional supply curve for monopolists due to their market power.

Compare and contrast the economic outcomes of perfect competition and monopoly markets, particularly in terms of pricing and efficiency.

Identify the conditions under which a monopoly might incur losses and the implications for market exit decisions.

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Definitions:

Conflict Crime

Crimes that arise in the context of conflicts, often in areas experiencing warfare, civil unrest, or severe social discord.

Consensus Crime

Consensus crime refers to activities that are universally agreed upon as wrong or harmful to society, and thus are legislated against, such as murder or theft.

White-Collar Crime

Refers to an illegal act committed by a respectable, high-status person in the course of work.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.