A Partnership Has Accounts Receivable with a Basis of $0

question 95

True/False

A partnership has accounts receivable with a basis of $0 and a fair market value of $20,000 and depreciation recapture potential of $30,000.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 $20,000.

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Definitions:

CNS

The central nervous system, comprising the brain and spinal cord, responsible for processing and transmitting neural signals in the body.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for conveying information to and from the central nervous system.

Co-sleeping

The practice where babies and young children sleep close to one or both parents, as opposed to in a separate room.

Modern Countries

Nations that are characterized by developed economies, technological advancement, and contemporary social structures.