The SSC Partnership, a cash-method partnership, has a balance sheet that includes the following assets on December
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Question:
The SSC Partnership, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year:
Basis | FMV | ||
Cash | $180,000 | $180,000 | |
Accounts receivable | -0- | 60,000 | |
Equipment (cost = $100,000) | 40,000 | 50,000 | |
Land | 90,000 | 120,000 | |
Total | $310,000 | $410,000 | |
Which of SSC's assets are considered hot assets under §751(a)?
Cash and accounts receivable.
Cash and land.
Accounts receivable and land.
Accounts receivable and inherent recapture in the equipment under §1245.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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