A Partnership Has Accounts Receivable with a Basis of $0

question 13

True/False

A partnership has accounts receivable with a basis of $0 and a fair market value of $10,000 and depreciation recapture potential of $15,000.All other assets of the partnership are either cash,capital assets,or § 1231 assets.If a purchaser acquires a 30% interest in the partnership from another partner,the selling partner will be required to recognize ordinary income of $7,500.

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Definitions:

Expiratory Phase

The part of the respiratory cycle where air is expelled from the lungs.

Pale Nasal Mucosa

A condition where the lining of the nose appears lighter in color, which can be a sign of dehydration or other medical conditions.

Clubbing

Bulging of the tissues at the nail base caused by insufficient oxygenation at the periphery, resulting from conditions such as chronic emphysema and congenital heart disease.

Allergies

Hypersensitivity reactions of the immune system to certain substances which are harmless for most people.