In a Proportionate Liquidating Distribution in Which the Partnership Is

question 39

True/False

In a proportionate liquidating distribution in which the partnership is also liquidated,Rosie received cash of $20,000 and inventory (basis of $12,000 and fair market value of $17,000).Immediately before the distribution,Rosie's basis in the partnership interest was $50,000.Rosie recognizes a loss of $18,000,and her basis in the inventory is $12,000.

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Definitions:

Adhesion Conscionability

Adhesion conscionability examines whether a contract, typically a "take-it-or-leave-it" deal presented by the stronger party to the weaker, is so one-sided that it is unfair to the weaker party and therefore unenforceable.

Procedural Unconscionability

A legal principle referring to circumstances where the process involved in making a contract is deemed unfair or unjust, often due to a significant imbalance in power or information between the parties.

Substantive Unconscionability

A legal doctrine that allows courts to refuse to enforce a contract or part of it, if the contract is excessively unfair or oppressive.

Adhesion Conscionability

A legal concept referring to the fairness of contract terms in a standard-form agreement, where one party has significantly more power to dictate the terms.