Barney,Bob,and Billie Are Equal Partners in the BBB Partnership

question 48

Multiple Choice

Barney,Bob,and Billie are equal partners in the BBB Partnership.The partnership balance sheet reads as follows on December 31 of the current year: Partner Billie has an adjusted basis of $40,000 for her partnership interest.If Billie sells her entire partnership interest to new partner Janet for $60,000 cash,how much capital gain and ordinary income must Billie recognize from the sale?

• A)$20,000 ordinary income.
• B)$20,000 capital gain.
• C)$10,000 ordinary income;$10,000 capital gain.
• D)$30,000 ordinary income;$10,000 capital loss.
• E)None of the above.

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Definitions:

Scientific Activity

The process of conducting systematic research to increase knowledge, utilizing empirical evidence and scientific methods.

Public Spaces

Areas that are open and accessible to people, including parks, streets, and public squares, serving as venues for interaction and community life.

Intrinsic Motivation

The desire to behave in a certain way because it is enjoyable or satisfying in and of itself.

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Incentives provided by an external source, such as money or praise, that motivate individuals to perform certain tasks.