Clark and Lois Formed an Equal Partnership Three Years Ago

question 148

Multiple Choice

Clark and Lois formed an equal partnership three years ago.Clark contributed cash of $160,000 while Lois contributed land with a $90,000 adjusted basis and a $160,000 FMV.Three years later the land is sold for $210,000.The tax results to Clark and Lois are

• A)$25,000 of gain to both Clark and Lois.
• B)$50,000 of gain to both Clark and Lois.
• C)$25,000 of gain to Clark and $70,000 gain to Lois.
• D)$25,000 of gain to Clark and $95,000 gain to Lois.

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Definitions:

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present, and potential customers for the product or service.

Personal Selling

A sales technique involving direct interaction between a salesperson and a customer with the aim of persuading the customer to purchase a product or service.

Non-price Strategy

Marketing tactics that do not involve altering the price, such as product differentiation, branding, and quality improvements.

Upper-middle Class

A socio-economic group characterized by high educational attainment, professional careers, and relatively high income.