The PW Partnership's Balance Sheet Includes the Following Assets Immediately

question 2

Multiple Choice

The PW partnership's balance sheet includes the following assets immediately before it liquidates: In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners) . Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. What is the amount and character of Wade's recognized gain or loss?

• A) $0.
• B) $5,000 capital gain.
• C) $5,000 ordinary income.
• D) $2,500 capital gain and $2,500 ordinary income.

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Definitions:

ACC Value

Short for "Accumulated Value," it refers to the total sum or aggregate value gathered over time or operations within a system.

RES Instruction

The RES Instruction in PLC programming is used to reset a specified bit or status indicator back to its default state.