Kristen and Harrison Are Equal Partners in the KH Partnership

question 85

Multiple Choice

Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership 5 years ago by contributing cash. Prior to any distributions Harrison has a basis in his partnership interest of $44,000. On December 31, KH makes a proportionate operating distribution of $50,000 cash to Harrison. What is the amount and character of Harrison's recognized gain or loss and what is his remaining basis in KH?

• A) $0 gain, $0 basis.
• B) $6,000 capital gain, $0 basis.
• C) $6,000 capital loss, $0 basis.
• D) $6,000 capital gain, $44,000 basis.

---

Definitions:

Surgical Floor

A specialized hospital ward dedicated to patients who are recovering from surgical procedures, providing necessary care, monitoring, and treatment.

General Anesthesia

A medical state induced before surgeries or painful procedures, characterized by loss of consciousness, sensation, and reflexes.

Analgesia

The state or process of reducing pain through the administration of drugs or other medical methods.

Amnesia

A condition characterized by memory loss, typically caused by brain injury, disease, or psychological trauma, affecting short-term or long-term memory.