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:

Menstrual Period

A natural, recurring biological process in female bodies that involves the shedding of the uterine lining, typically lasting a few days to a week.

Menopause

The transition period in a woman's life marking the end of her reproductive years, characterized by the cessation of menstruation.

Osteoporosis

A bone disease characterized by decreased density and strength of the bones, leading to an increased risk of fractures.

Brittle

Referring to a physical property where a material is hard but easily broken or cracked.