Howard Is a Partner in the Smithton Partnership with a Basis

question 15

Multiple Choice

Howard is a partner in the Smithton Partnership with a basis of $20,000. During the current year, the partnership is liquidated and the partnership distributes cash of $22,000 and property with a basis of $8,000 and a fair market value of $15,000 to each partner. What amount must Howard report as a gain from the liquidation?

• A)$- 0 -
• B)$2,000
• C)$10,000
• D)$15,000
• E)$17,000

---

Definitions:

Social Phobia

A mental health condition characterized by an intense, persistent fear of being watched, judged by others in social situations, leading to avoidance of social interactions.

Substance-related Disorder

A medical condition characterized by the excessive use or dependence on addictive substances, such as drugs or alcohol, leading to clinical and functional impairments.

Low Conscientiousness

Exhibiting a tendency towards disorganization and a lack of dependability in personal or professional matters.

High Extraversion

A personality trait characterized by high levels of energy, positive emotions, assertiveness, sociability, and the tendency to seek stimulation in the company of others.