Last Year,Miguel Contributed Nondepreciable Property with a Basis of $50,000

question 74

Multiple Choice

Last year,Miguel contributed nondepreciable property with a basis of $50,000 and a fair market value of $75,000 to the Starling Partnership in exchange for a 25% interest in the partnership.In the current year,he receives a nonliquidating distribution from the partnership of other property with a basis to the partnership of $40,000 and a fair market value of $52,000.The basis in his partnership interest at the time of the distribution was $60,000.How much gain or loss does Miguel recognize on the distribution? (Assume no other distributions have been made to Miguel,the property he originally contributed is still owned by the partnership,and this is not a disguised sale transaction. )

• A)$0 gain or loss.
• B)$2,000 loss.
• C)$6,000 gain.
• D)$8,000 gain.
• E)$10,000 gain.

Understand the basic principles of insurance and risk management.

Comprehend the concept of moral hazard and how it impacts market efficiency.

Grasp the mechanism of adverse selection and its effects on markets.

Analyze the role of information asymmetry in economic behaviors and market outcomes.

---

Definitions:

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, music, or therapy.

Acculturative Stress

The psychological impact of adaptation to a new culture, including stress from losing cultural cues and identity.

General Adaptation Syndrome

A theory in psychology that defines the three stages of response (alarm, resistance, exhaustion) that the body goes through when exposed to chronic stress.

Type D Personality

A personality type characterized by high levels of stress, negativity, and the tendency to experience uncomfortable emotions.