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

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Definitions:

Bona Fide Occupational Qualifications

Refers to the essential job qualifications that an employer can legally require, which can include a specific age, sex, religion, or national origin, if they are reasonably necessary to the normal operation of that particular business.

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A social construct used to categorize humans into large and distinct populations based on various factors including physical appearance, ancestry, culture, and history.

Human Resource Planning

The process used by organizations to ensure that they have the right number and kind of capable employees to meet their current and future business needs.

Labour-management Relations

Refers to the formal and informal relationships between employees and employers, encompassing negotiation, communication, and collaboration to resolve workplace issues.