Maxine Has a 65% Interest in a Partnership

question 92

Multiple Choice

Maxine has a 65% interest in a partnership.Maxine sells land to the partnership for $60,000.Prior to the sale,the land had a FMV of $60,000 and an adjusted basis of $90,000 to Maxine.Later,the partnership sells the land to an outsider for $110,000.The partnership must report a gain of

• A)$0.
• B)($30,000).
• C)$20,000.
• D)$50,000.

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Definitions:

Neurons

Dedicated cells in the nervous system whose function is to communicate information to other nerve cells, muscle tissue, or glands.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream to regulate various bodily functions.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Bloodstream

The flowing blood within the circulatory system of a body, responsible for transporting nutrients and removing wastes.