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

question 17

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:
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?

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Definitions:

False Negative

An error in test results in which a positive condition is incorrectly reported as negative.

Discrete Probability Distribution

A statistical distribution that shows the probabilities of outcomes with distinct values.

Standard Deviation

A metric that quantifies the spread or variation of a data collection in comparison to its average value.

Probability Distribution

Describes how probabilities are distributed over the values of a random variable; it's a mathematical function showing the likelihood of different outcomes.