Julie Owns Property That Is Treated as a Capital Asset

question 74

True/False

Julie owns property that is treated as a capital asset in her hands. She contributed a parcel of land (basis $60,000; fair market value $58,000) to a real estate partnership, which will hold it as inventory. After three years, the partnership sells the land for $56,000. The partnership will recognize a $4,000 ordinary loss on sale of the property.

---

Definitions:

Job Context

Involves the physical and social aspects of a work environment that influence the satisfaction and efficiency of employees.

Acquired Needs Theory

A motivational model that posits individuals are driven by acquired needs, such as the need for achievement, power, and affiliation.

Achievement

The successful completion of tasks or attainment of goals through effort, skill, or courage, often recognized and rewarded.

Expectancy Theory

Expectancy theory is a motivational theory that suggests an individual's behavior is determined by their expected outcomes, based on their beliefs about effort-performance relationships, and the desirability of these outcomes.