Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash, an investment with a fair value of $20,000 (inside basis of $10,000), and a parcel of land with a fair value of $10,000 (inside basis of $5,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $48,000. What is Randolph's basis in the distributed investment and land?
A. $22,000 investment, $11,000 land.
B. $10,000 investment, $5,000 land.
C. $20,000 investment, $13,000 land.
D. $20,000 investment, $10,000 land.
Answer: A
You might also like to view...
________ releases a partner from liability for having exceeded his or her authority and binds the partnership to the contract as if it had been authorized all along.
A. Rescission B. Emancipation C. Ratification D. Devolution
Answer the following statements true (T) or false (F)
1. Empowering segment managers to make decisions increases managers' motivation and retention. 2. Decentralization may cause the company to duplicate certain costs or activities. 3. Decentralized companies rarely struggle to achieve goal congruence. 4. In a decentralized company, segment managers may not fully understand the big picture when making decisions. 5. Managerial accountants can design performance evaluation systems that encourage goal congruence.
If a company wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase, it would use an application known as ________ ________.
Fill in the blank(s) with the appropriate word(s).
Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?
What will be an ideal response?