At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $34,000, including her $21,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $24,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale? Multiple Choice $9,500 capital loss. $9,500 ordinary loss. $11,500 capital gain. $3,500 ordinary income.

At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $34,000, including her $21,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $24,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale? Multiple Choice $9,500 capital loss. $9,500 ordinary loss. $11,500 capital gain. $3,500 ordinary income.

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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