Sam Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 96

Multiple Choice

Sam receives a proportionate nonliquidating distribution when the basis of his partnership interest is $40,000.He received a cash distribution of $25,000 and a property distribution (basis of $10,000 and fair market value of $12,000) .In addition,Sam's share of partnership liabilities was reduced by $20,000 during the year.How much gain or loss does Sam recognize;what is his basis in the property he received;and what is his remaining basis in the partnership interest?

• A)$0 gain or loss;$10,000 basis in property;$5,000 remaining basis.
• B)$0 gain or loss;$12,000 basis in property;$3,000 remaining basis.
• C)$5,000 gain;$0 basis in property;$0 remaining basis.
• D)$5,000 gain;$0 basis in property;$5,000 remaining basis.
• E)$17,000 gain;$12,000 basis in property;$0 remaining basis.

Examine the effects of situational variables on obedience, including the proximity of authority figures and the victim.

Understand the concept of authoritarian personality and its correlation with obedience and political orientation.

Understand the concept of economic profits and losses in perfectly competitive industries.

Comprehend the reasons and conditions under which firms enter or exit an industry.

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Definitions:

Real Consequences

The actual outcomes or effects that result from actions or decisions.

Duty Ethics

An ethical framework that emphasizes duties or moral obligations as the basis for action, typically associated with the philosophy of Immanuel Kant.

Personalistic Ethics

An ethical perspective that emphasizes the centrality of individual human beings and their values and moral decision-making.

End-result Ethics

A perspective on ethics that judges the morality of an action based solely on its outcomes or consequences.