Patrick Purchased a One-Third Interest in the PPP Partnership for $600,000

question 27

Multiple Choice

Patrick purchased a one-third interest in the PPP partnership for $600,000. At the time of the purchase, the partnership had a 754 election in effect and its only asset was land with a basis of $1,500,000. This year, PPP sells the land for $1,800,000. What is Patrick's recognized share of the gain on the sale of the land?

• A)$0
• B)$100,000
• C)$300,000
• D)none of the above

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Definitions:

Blunted Affect

A reduction in the intensity of an individual's emotional response, often seen in psychiatric disorders.

Hallucinations

Sensory experiences that appear real but are created by the mind, without external stimuli, and can affect all senses.

Voices

Auditory perceptions that are experienced without an external stimulus and are often associated with certain mental health conditions.

Loosening Of Associations

A thought disorder characterized by a breakdown in the logical progression of thoughts, often seen in schizophrenia.