The PW Partnership's Balance Sheet Includes the Following Assets Immediately

question 54

Multiple Choice

The PW partnership's balance sheet includes the following assets immediately before it liquidates:
In complete liquidation PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners) . Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. What is the amount and character of Wade's recognized gain or loss?
$$\begin{array} { | l | r | r | } \hline & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 10,000 & \$ 10,000 \\\hline \text { Unrealized receivables } & - 0 - & 10,000 \\\hline \text { Total } & \$ 10,000 & \$ 20,000 \\\hline\end{array}$$

• A) $0
• B) $5,000 capital gain
• C) $5,000 ordinary income
• D)$2,500 capital gain and $2,500 ordinary income

Recognize the role of fiscal policy in addressing economic downturns.

Identify the historical and theoretical context of Keynesian economics.

Understand the difference between beliefs and attitudes.

Identify the concepts of automatic and deliberate attitudes.

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Definitions:

Armadillos

A group of New World placental mammals known for their leathery armor shell.

Chimpanzee

A species of great ape native to the forests and savannahs of tropical Africa, known for its intelligence and complex social behaviors.

Parrot

A type of bird known for its ability to mimic sounds and speech.

Dolphin

A highly intelligent marine mammal known for its playful behavior, echolocation abilities, and complex social structures.