Anthony's Basis in the WAM Partnership Interest Was $200,000 Just

question 62

Multiple Choice

Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000) , and inventory (basis of $30,000, fair market value of $70,000) .After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

• A)$80,000 loss; $90,000 (land); $30,000 (inventory).
• B)$70,000 loss; $100,000 (land); $30,000 (inventory).
• C)$30,000 loss; $100,000 (land); $70,000 (inventory).
• D)$0 gain or loss; $170,000 (land); $30,000 (inventory).
• E)None of the above.

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Definitions:

Daily Basis

Refers to tasks, work, or actions that are performed or occur every day.

Workplace Conflicts

Disagreements or disputes between employees or between employees and management within a workplace setting.

Management Negotiators

Individuals or teams designated by an organization's management to represent the company in bargaining discussions with labor unions or employees.

Contract Settlement

The final agreement reached between parties (e.g., between employer and employees' union) outlining the terms and conditions of employment after negotiations, usually formalized in a written document.