The Crimson Partnership Is a Service Provider

question 82

True/False

The Crimson Partnership is a service provider. Its assets consist of unrealized receivables (basis of $0, fair market value of $400,000), cash of $300,000, and land (basis of $200,000, fair market value of $300,000). Assume 20% general partner Jana has a basis in her partnership interest of $100,000. If the ongoing partnership distributes $200,000 of cash to Jana in liquidation of her interest in the partnership, she will recognize ordinary income of $80,000 and a capital gain of $20,000.

---

Definitions:

Willingness to Take Risks

The propensity of an individual to engage in behaviors or actions that have the potential for negative outcomes in pursuit of a desired result.

Defer to Others

The act of yielding or submitting to the judgment, opinion, or decision of another person.

Controversial Issue

A topic or matter that generates significant disagreement or debate among people, often due to differing beliefs, values, or interests.

Evaluate Conflicting Views

The process of critically assessing differing opinions or perspectives on a particular issue.