Jamie Owns a 40% Interest in the JSD LLC

question 41

Multiple Choice

Jamie owns a 40% interest in the JSD LLC. In liquidation of the entity, Jamie receives a proportionate distribution of $20,000 cash, inventory (basis of $12,000 and fair market value of $14,000) , and land (basis of $10,000 and fair market value of $30,000) . Jamie's basis in the entity immediately before the distribution was $50,000. As a result of the distribution, what is Jamie's basis in the inventory and land, and how much gain or loss does she recognize?

• A) $0 basis in inventory; $30,000 basis in land; $0 gain or loss.
• B) $12,000 basis in inventory; $18,000 basis in land; $0 gain or loss.
• C) $12,000 basis in inventory; $10,000 basis in land; $8,000 loss.
• D) $14,000 basis in inventory; $30,000 basis in land; $14,000 gain.
• E) $30,000 basis in inventory; $0 basis in land; $0 gain or loss.

Understand and calculate the median for both even and odd-sized data sets.

Comprehend and apply the concept of geometric mean to estimate future rates of return or growth.

Identify measures of central location and their sensitivity to extreme values.

Describe the relationship between distribution shape and the location of the mean in a histogram.

---

Definitions:

Patterns of Thought

Distinctive ways of thinking and understanding the world, often influenced by culture, experience, and education.

Consistent Patterns

Consistent patterns refer to recurring behaviors or phenomena that show a regular and predictable form, often observed in data analysis, behavior studies, and natural processes.

Five Factor Model

A theory identifying five primary dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Model

A theoretical framework designed to describe, explain, and predict an individual's character traits and behavioral patterns.