#22 A partnership distributes land with a fair market value (FMV) of $80,000 and an adjusted basis to the partnership of $100,000, to one of its partners, Harold. Harold's basis in his partnership interest immediately before the distribution is $110,000: What amount of gain or loss does the partnership recognize on the distribution, and what is Harold's basis in the land he receives on the distribution?

• $0 gain/loss; $100,000 basis in the land
• $20,000 loss; $100,000 basis in the land
• $0 gain/loss; $80,000 basis in the land
• $0 gain/loss; $110,000 basis in the land

#25 Guaranteed payments for services rendered are reported by an individual partner who receives them on a Schedule ____________.

#30 Income from an S corporation is taxed:

		always at the shareholder level.
		always at the corporate level.
		at the shareholder level, but only if it is distributed to the shareholders.
		at the corporate level if the income is not distributed to the shareholders.

#31 Which of the following is not a requirement of a "small business corporation?"

• It must be a domestic corporation.
• It can never have more than 100 shareholders.
• It must use the reserve method of accounting.
• It can only have one class of stock.