The December 31, 2014, balance sheet of the BCD LLP reads as follows.
Each partner shares in 1/3 of the partnership capital, income, gain, loss, deduction, and credit. Capital is not a material income-producing factor to the partnership. On December 31, 2014, general partner Christina receives a distribution of $140,000 cash in liquidation of her partnership interest under § 736. Nothing is stated in the partnership agreement about goodwill. Christina's outside basis for the partnership interest immediately before the distribution is $84,000.
How much is Christina's recognized gain from the distribution and what is the character of the gain?
Definitions:
Lack Of Control Theory
A psychological concept suggesting that individuals who feel they have little control over their life circumstances are more likely to develop mental health issues.
Artifact Theory
A concept that suggests perceptions or interpretations of data can be influenced by inherent biases or flaws in the measurement process.
Hormone Theory
A concept suggesting that hormones play a central role in determining behavior and physiological processes.
Cognitive Triad Theory
A model in cognitive therapy that focuses on an individual’s negative evaluations of themselves, their world, and their future.
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