The Crimson Partnership Is a Service Provider

question 86

True/False

The Crimson Partnership is a service provider. Its assets consist of unrealized receivables (basis $0, value $200,000), cash of $200,000, and land (basis of $280,000, value of $400,000). Assume 25% general partner Jill has a basis in her partnership interest of $130,000. If the ongoing partnership distributes the $200,000 cash to Jill in liquidation of her interest in the partnership, she will recognize ordinary income of $50,000 and a capital gain of $20,000.

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Definitions:

Waxy Sheen

A smooth, glossy appearance on surfaces that resembles the texture or luster of wax.

Medical Office

A facility or space where medical professionals conduct examinations, consultations, and treat patients.

Second-degree

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Epidermis

The outermost layer of skin, serving as the body's primary barrier against environmental damage.