Brian Is a 25% Partner in the BC Partnership

question 29

Multiple Choice

Brian is a 25% partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (inside basis $8,000) to Brian. BC has no liabilities at the date of the distribution. Brian's basis in his BC partnership interest is $16,000. What is the amount and character of Brian's gain or loss on the distribution?

• A) $0.
• B) $4,000 capital gain.
• C) $12,000 capital gain.
• D) $20,000 capital gain.

---

Definitions:

Flood

The result of water overfilling a channel and spilling out onto the floodplain or other adjacent land.

Hydrographs

Charts that show the flow rate of water over time at a specific point in a river or stream.

Peak Discharge

The maximum flow rate of water, such as within a stream or river, at a specific point following a storm or snowmelt.

Flash Flood

A rapid and extreme flow of high water into a normally dry area, or a rapid water level rise in a stream or creek above a predetermined flood level, typically caused by intense rainfall over a short duration.