Question
#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
#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:
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#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.
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