Matt Receives a Proportionate Nonliquidating Distribution

question 10

Multiple Choice

Matt receives a proportionate nonliquidating distribution.At the beginning of the partnership year, the basis of his partnership interest is $60,000.During the year, he received a cash distribution of $25,000 and a property distribution (basis of $20,000, fair market value of $12,000) .In addition, Matt's share of partnership liabilities was reduced by $20,000 during the year.How much gain or loss does Matt recognize; what is his basis in the property he received; and what is his remaining basis in the partnership interest?

• A)$3,000 loss; $12,000 basis in property; $0 remaining basis.
• B)$0 gain or loss; $15,000 basis in property; $0 remaining basis.
• C)$0 gain or loss; $20,000 basis in property; $15,000 remaining basis.
• D)$0 gain or loss; $12,000 basis in property; $23,000 remaining basis.
• E)$5,000 gain; $20,000 basis in property; $0 remaining basis.

Understand the factors that cause shifts in the supply and demand for loanable funds.

Analyze how changes in government budget positions affect interest rates and investments.

Identify how changes in consumer behavior and economic policies influence saving and investment decisions.

Distinguish between movements along and shifts of the supply and demand curves for loanable funds.

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Definitions:

Threat Level

a measure or assessment of the seriousness or imminence of danger or harm.

Trust of Clients

The confidence and reliance clients place in their service providers, crucial for the effectiveness of services provided.

Ecological Factors

Elements within the environment, including both biotic (living) and abiotic (non-living) components, that affect organisms and ecosystem processes.

Salient Systems

Key or prominent systems that significantly impact or influence a specific context or environment.