The RST Partnership Makes a Proportionate Distribution of Its Assets

question 122

Multiple Choice

The RST Partnership makes a proportionate distribution of its assets to Ryan, in complete liquidation of his partnership interest. The distribution consists of $40,000 in cash and capital assets with a basis to the partnership of $30,000 and a fair market value of $48,000. None of the payment is for partnership goodwill. At the time of the distribution, Ryan's partnership basis is $45,000 and the partnership has no liabilities and no "hot assets." If the partnership makes an optional basis adjustment election on a timely filed return, it recognizes:

• A) Capital gain of $25,000 and increases the basis of its remaining assets by $12,500.
• B) Capital loss of $5,000 and decreases the basis of its remaining assets by $5,000.
• C) No gain or loss and increases the basis of its remaining assets by $25,000.
• D) No gain or loss and decreases the basis of its remaining assets by $58,000.
• E) None of the above.

Analyze the role of physical attractiveness and the "halo effect" in social perceptions and relationships.

Explore the dynamics of jealousy and conflict in relationships, including their causes and implications.

Understand the distinctions in attitudes toward love and sex among different genders and sexual orientations.

Learn about effective communication strategies in relationships, including self-disclosure, sexual communication, and conflict resolution.

---

Definitions:

Seafaring Trade

The exchange of goods and services across the seas and oceans, requiring navigational and maritime skills developed throughout human history.

Informal Economy

Economic activities that occur outside of formal regulatory frameworks, often lacking in legal protection and involving cash-based transactions.

Marketable Commodities

Goods or products that can be bought and sold easily in the market because they are in demand.

Government Control

Refers to the regulatory or directive actions taken by a government to manage its affairs and the behavior of its citizens.