Maria Owns a 60% Interest in the KLM Partnership

question 155

True/False

Maria owns a 60% interest in the KLM Partnership. Four years ago her father gave her a parcel of land. The gift basis of the land to Maria is $60,000. In the current year, Maria had still not figured out how to use the land for her own personal or business use? consequently, she sold the land to the partnership for $50,000. The partnership immediately started using the land as a parking lot for its employees. Maria may recognize her $10,000 loss on the sale.

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Definitions:

Deep Water Exploration

The process of investigating and exploring the seabed and sub-sea layers in oceanic environments at great depths for resources or scientific research.

Company Profits

The financial gain that a company obtains after deducting all its expenses from its total revenues.

Restructuring

The process of altering the organizational, operational, or financial setup of a company to make it more profitable, efficient, or better organized for its current needs.

Systematic Change

A comprehensive and coordinated effort to modify the structures, processes, or policies of an organization or society to achieve significant improvements.