A partner with a $100,000 basis in their partnership interest receives a tract of land (A.B to partnership - $70,000; FMV - $120,000) from the partnership in a proportionate distribution. The partner will recognize as a result of the distribution

Group of answer choices

a $30,000 loss

a $20,000 gain

a $120,000 gain

no gain or loss none of the above

Which of the following is most likely to trigger the recognition of a gain or loss by a partner?

Group of answer choices

Proportionate distributions

Disproportionate distributions

Liquidating distributions

None of the above can trigger gain or loss recognition for a partner

Which of the following distributions is most likely to trigger the recognition of gain or loss by a partnership upon its distribution to a partner?

Group of answer choices

Appreciated property

Depreciated property

Unrealized receivables

Distributions of none of the above will trigger gain or loss recognition for the distribution partnership

A disproportionate cash distribution made by a partnership with hot assets will

Group of answer choices

trigger gain recognition for the distributing partnership

trigger the recognition of capital gain by the partner receiving the distribution

lead to an adjustment of the inside basis of hot assets

none of the above.

Peter is a partner in a partnership that manufacturers and sells electronic equipment. The partnership's assets include property, plant, and equipment used in the production of its inventory as well as the inventory itself. Given the quality and popularity of the partnerships product, the partnership has built up a significant amount of goodwill and can sell its products at a substantial markup. Peter sells his partnership interest to a new partner, realizing a $1,000,000 gain. What is most likely true about the gain?

Group of answer choices

The gain need not be recognized

It is entirely a capital gain.

It is entirely an ordinary gain

The gain will be part capital and part ordinary.

None of the above