The SSC Partnership Balance Sheet Includes the Following Assets on December

question 53

Multiple Choice

The SSC Partnership balance sheet includes the following assets on December 31 of the current year:
Susan, a 1/3 partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Susan's gain or loss from the sale?
$$\begin{array} { | l | r | r | } \hline & \text { Basis } & \text { FMN } \\\hline \text { Cash } & \$ 180,000 & \$ 180,000 \\\hline \text { Accounts receivable } & - 0 - & 60,000 \\\hline \text { Land } & 90,000 & 120,000 \\\hline \text { Total } & \$ 270,000 & \$ 360,000 \\\hline\end{array}$$

• A) $10,000 capital gain
• B) $10,000 ordinary income
• C) $20,000 ordinary income; $10,000 capital gain
• D)$10,000 capital loss; $20,000 ordinary income

---

Definitions:

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, sometimes requiring accommodations.

Document Design

The process of arranging text and visuals on a page or screen to improve readability and aesthetics.

Design Term

A term that pertains to the concepts, practices, or methodologies involved in the process of creating and planning objects, systems, or interactive experiences.

Alternative Text

Textual descriptions of non-text content, such as images, to make digital content accessible to those who cannot see the images.