A Partnership Has Accounts Receivable with a Basis of $0

question 43

True/False

A partnership has accounts receivable with a basis of $0 and a fair market value of $30,000 and depreciation recapture potential of $20,000. All other assets of the partnership are either cash, capital assets, or § 1231 assets. If a purchaser acquires a 40% interest in the partnership from another partner, the selling partner will be required to recognize ordinary income of $12,000.

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Definitions:

Popular Song

A song that becomes widely known, usually in the contemporary music genre, and gains popularity through commercial success or widespread recognition.

Tuning Forks

Musical instruments which vibrate at a specific pitch when struck, used for tuning musical instruments or for therapeutic purposes.

O Proposition

In traditional logic, a proposition that states that some members of a category do not share a specific attribute.

Enthymeme

An enthymeme is a rhetorical syllogism commonly used in persuasive speech, where one of the premises is not explicitly stated but is implied, making the argument rely on the audience's recognition of the unstated premise.