Laura is a real estate developer and owns property that is treated as inventory (not a capital asset) in her business. She contributes a parcel of this land (basis of $15,000) to a partnership, also to be held as inventory. The fair market value of the property is $12,000 at the contribution date. After three years, the partnership sells the land for $10,000. The partnership will recognize a $5,000 ordinary loss on sale of the property.
Answer the following statement true (T) or false (F)
True
Rationale: Because the property was not a capital asset in Laura's hands, the partnership is not subject to the requirement that precontribution losses realized and recognized by the partnership within five years of contribution be treated as capital losses.
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Imagine that you are the judge hearing a case for sexual harassment filed by a woman who reports that she was forced to have sex in the workplace with her supervisor. She admits that for some months prior to the event, she displayed her body through seminude photos, lifted her skirt to verify an absence of undergarments, made highly salacious comments, and offered sexual gratification "to
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Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth wants to sell the car to her neighbor, John. Elizabeth's title to the car is A) valid
B) voidable. C) void. D) good.
A company has net income of $130,500. Its net sales were $1,740,000 and its average total assets were $2,750,000. Its profit margin equals 7.5%.
Answer the following statement true (T) or false (F)
Last year, a firm had a current ratio of 1.14. This year, the ratio is 0.98. Assuming everything else equal, what do these values imply?
a. The firm is less some of its short-term debt over the past year. b. The firm has current assers than it did one yaer ago. c. The frim is less liquid this year than it was last year d. The probability of the encountering financial distress is less now than it was a year ago.