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

question 70

Multiple Choice

Carlos 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) , land held as an investment (FMV $7,000, basis, $6,000) , and building (FMV $21,000, basis $9,000) . The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Carlos's basis in the building is

• A)$2,500.
• B)$6,000.
• C)$7,500.
• D)$9,000.

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Definitions:

Family Stress Model

A framework outlining how economic disadvantages contribute to parental stress, negatively impacting parenting techniques and hence child development.

Family Poverty

Family poverty refers to families living with income levels below the poverty line, leading to challenges in meeting basic needs such as food, shelter, and healthcare.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Bully-Victim

Someone who attacks others and who is attacked as well. (Also called provocative victim because they do things that elicit bullying.)