In a Proportionate Liquidating Distribution, Scott Receives a Distribution of $20,000

question 82

Multiple Choice

In a proportionate liquidating distribution, Scott receives a distribution of $20,000 cash, accounts receivable (basis of $0 and fair market value of $40,000) , and land (basis of $30,000 and fair market value of $60,000) . In addition, the partnership repays all liabilities, of which Scott's share was $20,000. Scott's basis in the entity immediately before the distribution was $100,000. As a result of the distribution, what is Scott's basis in the accounts receivable and land, and how much gain or loss does he recognize?

• A) $0 basis in accounts receivable; $30,000 basis in land; $0 gain or loss.
• B) $0 basis in accounts receivable; $60,000 basis in land; $0 gain or loss.
• C) $40,000 basis in accounts receivable; $30,000 basis in land; $0 gain or loss.
• D) $40,000 basis in accounts receivable; $60,000 basis in land; $20,000 gain.
• E) $0 basis in accounts receivable; $80,000 basis in land; $20,000 loss.

Understand the basic structure and life cycle of viruses, including strategies for viral evolution and impact on host cells.

Describe the structure of peptidoglycan and its role in bacterial cell walls, including its interaction with antibiotics.

Discuss the utility of ribosomal RNA (rRNA) in the phylogenetic analysis of microorganisms.

Evaluate microbial resistance strategies and control methods in managing pathogenic microbes.

---

Definitions:

External Attributions

The process of attributing the cause of one's own or others' behaviors to external factors or the situation.

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits when explaining others' behaviors.

Actor/observer Bias

A cognitive bias that explains differences in how people attribute causes to their own versus others' behavior; typically attributing one's own actions to situational factors and others' actions to personal characteristics.

Internal Attributions

Explanations for people's behaviors based on their internal characteristics, such as personality traits, motives, or attitudes, as opposed to the influence of external circumstances.