Jonathon Owns a One-Third Interest in a Liquidating Partnership

question 217

Multiple Choice

Jonathon owns a one-third interest in a liquidating partnership. Immediately before the liquidation, Jonathon's basis in the partnership interest is $60,000. The partnership distributes cash of $32,000 and two parcels of land (each with a fair market value of $10,000) . Parcel A has a basis of $2,000 to the partnership and Parcel B has a basis of $6,000. Jonathon's basis in the two parcels of land is:

• A) Parcel A, $2,000? Parcel B, $6,000.
• B) Parcel A, $7,000? Parcel B, $21,000.
• C) Parcel A, $10,000? Parcel B, $10,000.
• D) Parcel A, $14,000? Parcel B, $14,000.
• E) Parcel A, $15,000? Parcel B, $45,000.

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Definitions:

American Capitalist Society

A society characterized by a capitalistic economy, where private ownership, profit motive, and market competition are prevalent.

Ethnic Conspiracy

A belief or theory that a particular ethnic group is secretly working to achieve malignant goals.

Organized Crime

Structured groups engaged in criminal activities, often for profit, such as drug trafficking, extortion, and money laundering.

Burglary

The unlawful entry into a building with the intent to commit a crime, typically theft.