Before Receiving a Liquidating Distribution,Kathy's Basis in Her Interest in the KLM

question 90

Multiple Choice

Before receiving a liquidating distribution,Kathy's basis in her interest in the KLM Partnership is $30,000.The distribution consists of $5,000 in money,inventory having a $1,000 basis to the partnership and a $2,000 FMV,and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000,respectively.What is Kathy's basis in each parcel of land?

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which was developed by B.F. Skinner.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, theorized to lead to depression and other mental illnesses.

Psychopathology

The scientific study of mental disorders, including their symptoms, etiology (causes), and treatment.

Seligman

A psychologist best known for his research on learned helplessness, optimism, and positive psychology.