Barry Owns a 50 Percent Interest in B&B Interests, a Partnership

question 76

Multiple Choice

Barry owns a 50 percent interest in B&B Interests, a partnership. His brother, Benny, owns a 35 percent interest in that same partnership, and the remaining 15 percent is owned by an unrelated individual. During 2014, Barry sells a rental property with a basis of $60,000 to B&B Interests for $100,000. The partnership intends to hold the rental as inventory for resale. What is the amount and nature of Barry's gain or loss on this transaction?

• A)$40,000 long-term capital loss
• B)$0 gain or loss
• C)$40,000 long-term capital gain
• D)$40,000 ordinary income
• E)None of the above

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Definitions:

Christine Ladd-Franklin

An American psychologist and logician known for her work in psychology of vision and color theory, as well as being one of the first women to make significant contributions to the field of psychology.

Unconscious Mind

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Psychoanalysis

A set of theories and therapeutic methods related to the study of the unconscious mind, which together form a method of treatment for mental disorders.

Criminal Activities

Actions that are in violation of the legal codes and are punishable by law, ranging from theft and fraud to violent crimes.