Dacias basis in her partnership interest is $5,000. She receives a current distribution of $6,000 cash, and land with an adjusted basis of $2,000 and a fair market value of $3,000. The partnership had no unrealized receivables or substantially appreciated inventory. What is the result of this distribution to Dacia? a. $0 gain or loss, $0 basis in land, $-1,000 basis in partnership interest. b. $1,000 capital gain, $0 basis in land, $0 basis in partnership interest. c. $1,000 ordinary income, $2,000 basis in land, $0 basis in partnership interest. d. $3,000 capital gain, $2,000 basis in land, $0 basis in partnership interest.

Under the check the box regulations, any unincorporated business having two or more owners and that does not elect to be taxed as a corporation will be treated as a partnership. a.True

b. False

Expenses related to an S corporations tax-exempt income reduce the corporations other adjustments account (OAA). a. True b. False

Income in respect of a decedent (IRD), such as accrued vacation pay at the date of death, is included in the a. Gross Estate Estates Gross Income yes yes b. Gross Estate Estates Gross Income yes no c. Gross Estate Estates Gross Income no yes d. Gross Estate Estates Gross Income no no