Weqwe

Status | Completed |

Score | 20 out of 100 points   |

Time Elapsed | 10 minutes out of 2 hours. |

Instructions | |

* Question 1

0 out of 4 points

| |

| Barry owns a 50 percent interest in B&B Interests, a partnership. His brother, Benny, owns a 35 percent interest in that same partnership, and the remaining 15 percent is owned by an unrelated individual. During 2011, Barry sells a rental property with a basis of $60,000 to B&B Interests for $100,000. The partnership intends to hold the rental as inventory for resale. What is the amount and nature of Barry's gain or loss on this transaction?Answer | | | |

| Selected Answer: |  b. $0 gain or loss |

Correct Answer: |  d. $40,000 ordinary income |

| | | |

* Question 2

4 out of 4 points

| |

| Wallace and Pedersen have equal interests in the capital and profits of the partnership of Wallace and Pedersen, but are otherwise unrelated. On August 1, 2011, Wallace sold 100 shares of Kalmia Mining Corporation to the partnership for its fair market value of $7,000. Wallace had bought the stock in 1998 at a cost of $10,000. What is Wallace's deductible loss for 2011 as a result of the sale of this stock?Answer | | | |

| Selected Answer: |  c. $3,000 long-term capital loss |

Correct Answer: |  c. $3,000 long-term capital loss |

| | | |

* Question 3

4 out of 4 points

| |

| Jamie decides to contribute cash and property to a partnership she and her friends started.  She contributes a building worth $260,000 that she purchased for $100,000 and she also contributes $40,000 in cash.  What is her basis in the partnership?Answer | | | |

| Selected Answer: |  d. $140,000 |

Correct Answer: |  d. $140,000 |

| | | |

* Question 4

0 out of 4 points

| |

| Kitty is a 60 percent partner of Tabby Associates. Kitty sells a building to the partnership for $75,000. If the building had an adjusted basis to Kitty of $95,000, how much gain or loss...