Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair value of $20,000 (inside basis of $10,000) 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 $27,000. What is the amount and character of Randolph's gain or loss on the distribution?
A. $2,000 capital loss.
B. $8,000 capital loss.
C. $8,000 capital gain.
D. $0 gain or loss.
Answer: A
You might also like to view...
____ is the process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the manager develops action plans, the manager and employee periodically review the employee's performance, and the manager makes a performance appraisal and rewards the employee according to the results achieved.
A. Observation theory B. MBAO C. MBO D. Strategic planning E. An employee-management agreement
Which of the following is not a part of Frederick Taylors's work in scientific management?
A. Elimination of soldiering B. Motion studies C. Differential rate system D. Hierarchy of human needs E. Raising productivity
Briefly describe recurring arbitration's narcotic effect.
What will be an ideal response?
The reliability of job evaluation techniques is measured by:
A. surveying employee attitudes about the evaluation. B. determining if different evaluators produce the same results. C. asking the question "What does the evaluation measure?" D. determining hit rates.