The SSC Partnership Balance Sheet Includes the Following Assets on December

question 69

Multiple Choice

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

• 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:

Pain Circuit

A neural pathway in the body that processes and transmits the sensation of pain.

Excitatory

Referring to stimuli or neurotransmitters that increase the likelihood of a neuron firing an action potential, leading to activation of neural circuits.

Inhibitory

Refers to the process or substance that slows down or prevents a particular function, reaction, or activity in a biological system.

Caudate Nucleus

A brain structure within the basal ganglia, involved in various functions including motor control and learning.