Derrick's Interest in the DEF Partnership Is Liquidated When His

question 61

Multiple Choice

Derrick's interest in the DEF Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Derrick will recognize

• A)no gain or loss.
• B)$2,000 capital loss.
• C)$2,000 ordinary loss.
• D)$10,000 capital loss and $20,000 ordinary loss.

Recognize the benefits of financial incentives and how they reinforce performance in an organization.

Grasp the concept of pay grades, including how employee salaries relate to pay grade midpoints and rate anomalies.

Comprehend the role of an organization's compensation philosophy in managing conflicts within compensation management.

Identify the consequences of implementing salary limits within organizational compensation strategies.

---

Definitions:

Contingency Contract

A formal agreement between two parties where certain behaviors are linked with specific consequences or rewards.

Behavioral Change

The process of altering patterns of behavior, typically in order to improve health or social outcomes.

Reinforcements

In behavior psychology, any event that strengthens or increases the likelihood of a behavior occurring again.

Person-centered Therapist

A professional who practices a form of psychotherapy that emphasizes the importance of the individual's subjective experience and intrinsic capacity for self-healing and growth.