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:

Head Injury

Trauma to the skull, brain, or scalp, which can range from a mild bump or bruise to a significant brain injury.

Phobia

An intense, irrational fear of a specific object, situation, or activity that provokes anxiety and avoidance behavior.

Amygdala and Hippocampus

Two regions of the brain where the amygdala is involved in emotion regulation, particularly fear, and the hippocampus plays a key role in memory formation.

Object of Fear

A specific entity or scenario that induces a fear response in an individual.