15. DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of me will he report for $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to Percy of $20,000. If Percy owns a 40% capital and profits interest, how much inco the year and what is its character? a. $24,000 ordinary income. b. $24,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment. c. $25,600 ordinary income. d. $32,000 ordinary income, $1,600 interest income. e. $32,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment. 16 Mark and Addison formed a partnership. Mark received a 25% interest in partnership capital and profits in exchange for land with a basis of $40,000 and a fair market value of $60,000. Addison received a 75% interest in partnership capital and profits in exchange for $180,000 of cash. Three years after the contribution date, the land contributed by Mark is sold by the partnership to a third party for $76,000. How much taxable gain will Mark recognize from the sale? a. b. $9,000 c. $16,000 d. $24,000 e. $36,000 17. Which of the following would be classified as disproportionate distributions? Assume that A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB after the distribution. a. Partner A receives $6,000 cash and Partner B receives a capital asset val ued at S6,000. Partner A rec eives $6,00 0 cash and Partner B receives inventory items valued at $6,000 (basis $3,500) c. Both partners receive unrealized receivables with a basis of $0 and a value of $6,000 d. Items a. and c. represent disproportionate distributions. e. Items b. and c. represent disproportionate distributions 18. Mark receives a proportionate current (nonliquidating) distribution. At the beginning of the is During the year, he received a cash distribution of $40,000 and a property distribution (basis of $30,000, fair market value of $25,000). In addition, Mark's share of partnership liabilities was reduced by $10,000 during the year. How much gain or loss does Mark recognize; what is his basis in the property he received, and what is his remaining basis in the partnership interest? a. $25,000 loss; $25,000 basis in property; $0 remaining basis b. $30,000 loss; $30,000 basis in property; $0 remaining basis. c. $0 gain or loss; $25,000 basis in property; $25,000 remaining basis d. $0 gain or loss; $30,000 basis in property; $20,000 remaining basis. e. $0 gain or loss; $30,000 basis in property; $30,000 remaining basis. 19. Beth has an outside basis of $100,000 in the BJDE Partnership as of December 31 of the current year On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000. In addition, Beth receives an antique desk (not inventory) which has an inside basis (and fair market value of $5,000. None of the distribution is for partnership goodwill. How much gain or loss will Beth recognize on the distribution, and what basis will she take in a. $40,000 loss; $0 basis b. $35,000 loss; $5,000 basis. c. $0 gain or loss; $5,000 bas d. $0 gain or loss; $34,000 basis. e. $0 gain or loss; $40,000 basis