X is a one-half partner in a partnership with $4,000 of accounts receivable with a...
60.1K
Verified Solution
Link Copied!
Question
Accounting
X is a one-half partner in a partnership with $4,000 of accounts receivable with a zero basis, capital assets of $6,000 with a $2,000 basis and no liabilities. If X receives $5,000 of capital assets from the partnership in exchange for his entire interest, which of the following is deemed to occur?
A. X must recognize a capital fain of $2,000. B. X must recognize a capital gain of $3,000 C. X must recognize ordinary income of $2,000 D. X need not recognize any gain or loss.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
