Carl Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 77

Multiple Choice

Carl receives a proportionate nonliquidating distribution when the basis of his partnership interest is $60,000.The distribution consists of $20,000 in cash and property with an adjusted basis to the partnership of $35,000 and a fair market value of $40,000.Carl's basis in the noncash property and his remaining basis in the partnership interest are:

• A)$60,000;$0.
• B)$35,000;$0.
• C)$35,000;$5,000.
• D)$40,000;$5,000.
• E)None of the above.

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Definitions:

Capillary puncture

A procedure in which a small amount of blood is obtained via a puncture in the skin for testing, commonly performed on the fingertip or earlobe.

Fragile veins

Refers to veins that are more susceptible to damage or bruising, often due to medical conditions or aging.

Sterile needle

A needle that has been sterilized to prevent infection when penetrating the skin.

Venipuncture

The process of puncturing a vein with a needle to withdraw blood or insert fluids.