John Has a Basis in His Partnership Interest of $30,000

question 85

Multiple Choice

John has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , and investment land (FMV $7,000, basis $6,000) . The partners' relative interest in the Sec. 751 assets do not change as a result of the current distribution. His basis in the land is

• A)$5,000.
• B)$6,000.
• C)$7,000.
• D)$10,000.

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Definitions:

Two-Factor Theory

A psychological theory positing that human emotions and behaviors are a product of both physical arousal and cognitive interpretation of that arousal.

Dismantling Research Designs

A research method used to identify the components of a treatment that are effective by comparing the outcomes of the full treatment to those of treatments with certain components removed.

Constituents

Members or components of a larger group or system, often used to refer to the people represented by politicians or the parts of a compound or mixture.

Mediating Variables

Variables in statistical analysis that explain the relationship between two other variables, clarifying how or why such a relationship exists.