1) Identify the Issue with a question

shana is a 20% limited partner in the STUpartnership. Her basis in her partnership interest is $40000 when she decides to abandon her partnership interest. The partnership's balance sheet reports net assets of $203,000, Liabilities of $200,000 and partners' capital accounts as follows"

Shana-Captial $1000

Tom-Captial $1000

Urban-Captial $1000

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2) Identify the Issue with a question

Seven years ago, the Bonnet Corporation redeemed all of Joe Bonnets stock as a complete termination of interest. At the time, Joe signed a waiver of family attribution rules because his three sons retained all their stock. As part of this arrangement, Joe agreed to notify theIRS if he acquired a forbidden interest in the corporation. Recently, the corporation acquired a contract with a defense contractor to build a machine to produce specialized instruments forget planes. Joe had been the companys chief engineer prior to his retirement from the company. The sons asked Joe to come back as a consultant for a short period to get this project up and running.