Danielle Has a Basis in Her Partnership Interest of $12,000

question 48

Multiple Choice

Danielle has a basis in her partnership interest of $12,000. She receives a current distribution of $8,000 cash and equipment with a basis of $7,000. There is no potential gain under Sec. 737. What is her basis in the equipment?

• A)$0
• B)$4,000
• C)$7,000
• D)none of the above

Recognize the role of GAAP in tax allocation and the objectives behind income tax accounting.

Calculate the tax base of assets and liabilities for the purpose of recognizing deferred taxes.

Understand the concept of temporary differences in accounting.

Identify and record deferred tax liabilities and assets.

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Definitions:

Neuroconstructivist View

Theory of brain development emphasizing the following points: (a) biological processes and environmental conditions influence the brain’s development, (b) the brain has plasticity and is context dependent, and (c) the development of the brain and the child’s cognitive development are closely linked.

Biological Conditions

The state of living organisms and their processes, influenced by genetics, health status, and environmental factors.

Environmental Conditions

The state of the environment around us, including all living and non-living things that affect an organism's survival and development.

Plasticity

The capability of the brain to change and adapt in response to experience, learning, or injury.