Mr and Ms Smith's Partnership Owns the Following Assets

question 103

Multiple Choice

Mr. and Ms. Smith's partnership owns the following assets:
* Potential § 1245 recapture of $45,000.
** Straight-line depreciation was used.
Mr) and Ms. Smith each have a basis for their partnership interest of $135,000. Calculate their combined recognized gain or loss and classify it as capital or ordinary if they sell their partnership interests for $500,000.

• A)$230,000 ordinary income.
• B)$230,000 capital gain.
• C)$115,000 ordinary income and $115,000 capital gain.
• D)$110,000 ordinary income and $120,000 capital gain.
• E)None of the above.

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Definitions:

Self-Awareness

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Precontemplation And Contemplation

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Stages Of Change

A model outlining the phases individuals typically go through when modifying behavior, from precontemplation to maintenance.