David sells his one-third partnership interest to Diana for $60,000 when his basis in the partnership interest is $48,000.On the date of sale,the partnership has no liabilities and the following assets:
The building is depreciated on a straight-line basis.What tax issues should David and Diana consider with respect to the sale transaction?
Definitions:
Financial Statements
Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.
Extraordinary Gains
Unusual and infrequent gains that are reported separately from regular income because they result from events that are not part of the company's usual business activities.
Footnote Disclosure
Additional information provided at the bottom of financial statements, offering more detail on specific figures or accounting policies.
Statement of Retained Earnings
A financial statement that outlines the changes in a company's retained earnings over a specific period.
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