$49$

$2$ points

Jason is a $25\%$ partner in the JJM Partnership when he sells his entire interest to Lavelle for $$76,000.$ At the time of the sale, Jason's basis in JJM is $$87,000.$ JJM does not have any debt or hot assets. Jason's will recognize a gain of $$11,000$ on the sale of his partnership interest.

True

False $$

$2$ points

Ted is a $30\%$ partner in the TDW Partnership with an outside basis of $$20,000.$ TDW distributes $$15,000$ of cash in complete liquidation of Ted's interest. Ted recognizes a capital loss of $$5,000$ on the distribution.

True

False