Mary Inherits an Interest in Laser Partnership from Her Aunt

question 38

Multiple Choice

Mary inherits an interest in Laser Partnership from her Aunt Lillian during 2013.The fair market value of the interest as of the primary valuation date is $28,000.Aunt Lillian's adjusted basis was $16,000.What is Mary's initial basis and holding period in the partnership interest if she sells the interest seven months after inheriting it?

• A)$16,000, short-term.
• B)$16,000, long-term.
• C)$28,000, short-term.
• D)$28,000, long-term.
• E)Both depend on whether it is sold at a gain or a loss.

---

Definitions:

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements on wages, working conditions, benefits, and other aspects of workers' compensation and rights.

Formalize Agreement

The action of making an agreement official or legally binding through the proper channels and documentation.

Union Proposals

Suggestions or demands put forward by a labor union during negotiations with employers about terms of employment, wages, and workplace conditions.

Decertify

The process of revoking or removing the official recognition or certification of a role, organization, or activity, often related to unions.