The SSC Partnership Balance Sheet Includes the Following Assets on December

question 49

Multiple Choice

The SSC Partnership balance sheet includes the following assets on December 31 of the current year:
Which of SSC's assets are considered hot assets under §751(a) ?
$$\begin{array} { | l | r | r | } \hline & \text { Basis } & \text { FMN } \\\hline \text { Cash } & \$ 180,000 & \$ 180,000 \\\hline \text { Accounts receivable } & - 0 - & 60,000 \\\hline \text { Equipment (cost } = \$ 100,000 \text { ) } & 40,000 & 50,000 \\\hline \text { Land } & 90,000 & 120,000 \\\hline \text { Total } & \$ 310,000 & \$ 410,000 \\\hline\end{array}$$

• A) Cash and accounts receivable.
• B) Cash and land.
• C) Accounts receivable and land.
• D)Accounts receivable and inherent recapture under §1245 in the equipment.

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Definitions:

Hypertension

Hypertension, often known as high blood pressure, is a chronic medical condition where the blood pressure in the arteries is persistently elevated.

Statistical Significance

a mathematical measure that indicates whether the results of a study are likely not due to chance at a specified level of probability.

Catastrophic Thinking

Catastrophic thinking is an irrational thought process whereby an individual believes that something is far worse than it actually is; it can pertain to obsessing over possible worst-case scenarios.

Personality-Disordered

Relates to individuals who have enduring patterns of behavior, thinking, and experiencing emotions that deviate from cultural expectations and cause distress or impairment.