Paul Sells One Parcel of Land (Basis of $100,000) for Its

question 47

Multiple Choice

Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partnership in which he owns a 60% capital interest.Paul held the land for investment purposes.The partnership is in the real estate development business, and will build residential housing (for sale to customers) on the land.Paul will recognize:

• A)$0 gain or loss.
• B)$36,000 ordinary income.
• C)$36,000 capital gain.
• D)$60,000 ordinary income.
• E)$60,000 capital gain.

---

Definitions:

Silence

The absence of spoken words or sounds, which can be intentional and strategic in therapeutic settings to promote reflection or emotional processing.

Nutrition Counselors

Experts who assist individuals in understanding and improving their dietary practices through tailored advice and support.

Counseling Session

A structured period of time where a counselor and client work together to address issues and work towards goals in a supportive and confidential environment.

Clarifying

The process of making something understandable or clear, often by providing additional information or explaining in more detail.