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Cynthia Sells Her 1/3 Interest in the CAR Partnership to Brandon

Question 93

Multiple Choice

Cynthia sells her 1/3 interest in the CAR Partnership to Brandon for $95,000 cash.On the date of sale,the partnership balance sheet and agreed-upon fair market values were as follows: Cynthia sells her 1/3 interest in the CAR Partnership to Brandon for $95,000 cash.On the date of sale,the partnership balance sheet and agreed-upon fair market values were as follows: If the partnership has a § 754 election in effect,the total step-up in basis of partnership assets that will be allocated to Brandon is: A) $75,000. B) $65,000. C) $45,000. D) $20,000. E) $0. If the partnership has a § 754 election in effect,the total "step-up" in basis of partnership assets that will be allocated to Brandon is:


A) $75,000.
B) $65,000.
C) $45,000.
D) $20,000.
E) $0.

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