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Amina is a 30 percent partner in the AOM Partnership when she sells her entire interest to Hope for $79,000 cash. At the time of the sale, Amina's basis in AOM is $49,250 (which includes her $7,750 share of AOM liabilities). AOM does not have any hot assets. What is Amina's gain or loss on the sale of her interest?

Amina is a 30 percent partner in the AOM Partnership when she sells her entire interest to Hope for $79,000 cash. At the time of the sale, Amina's basis in AOM is $49,250 (which includes her $7,750 share of AOM liabilities). AOM does not have any hot assets. What is Amina's gain or loss on the sale of her interest?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amina is a 30 percent partner in the AOM Partnership when she sells her entire interest to Hope for $79,000 cash. At the time of the sale, Amina's basis in AOM is $49,250 (which includes her $7,750 share of AOM liabilities). AOM does not have any hot assets. What is Amina's gain or loss on the sale of her interest?
Transcribed Image Text:Amina is a 30 percent partner in the AOM Partnership when she sells her entire interest to Hope for $79,000 cash. At the time of the sale, Amina's basis in AOM is $49,250 (which includes her $7,750 share of AOM liabilities). AOM does not have any hot assets. What is Amina's gain or loss on the sale of her interest?
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