Victor Is a 1/3 Partner in the VRX Partnership with an Outside

question 5

Essay

Victor is a 1/3 partner in the VRX partnership with an outside basis of $156,000 on January 1. Victor sells his partnership interest to Raj on January 1^st for $200,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: $$\begin{array} { | l | r | r | } \hline \text { Assets: } & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 160,000 & \$ 160,000 \\\hline \text { Receivables } & 50,000 & 50,000 \\\hline \text { Inventory } & 80,000 & 170,000 \\\hline \text { Land held for investment } & 60,000 & 40,000 \\\hline \text { Total } & \$ 350,000 & \$ 420,000 \\\hline\end{array}$$ The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 7 years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest?

Identify aspects to consider when selecting a retail location.

Comprehend the implementation and impact of omnichannel retailing.

Understand the role of big data analytics in predicting retail trends.

Recognize the importance of atmospherics in creating a desirable retail space.

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Definitions:

Controllable Variance

Controllable Variance is the difference between actual spending and budgeted amounts that management could control or influence directly.

Variable Overhead

Costs that vary with production output, such as utilities or raw materials, but are not directly tied to a specific unit of production.

Operating Results

The financial outcomes achieved from a company's core business operations.

Variable Factory Overhead

Costs of production that fluctuate with the level of output, including utilities and materials not directly tied to a product's manufacture.