The Tandy Partnership owns the following assets on December 31:
$\begin{array}{|l|c|c|}
\hline \text { Assets } & \text { Basis } & \text { Fair Market Value } \
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. } 1231 \text { property } & \underline{35,000} & \underline{70,000} \
\text { Total } & \$ 75,000 & \$ 145,000 \
\hline
\end{array}$
Is the partnership's inventory considered to be substantially appreciated for purposes of Sec. 751? Show your work.

Question

The Tandy Partnership owns the following assets on December 31:
 $\begin{array}{|l|c|c|}
\hline \text { Assets } & \text { Basis } & \text { Fair Market Value } \
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. } 1231 \text { property } & \underline{35,000} & \underline{70,000} \
\text { Total } & \$ 75,000 & \$ 145,000 \
\hline
\end{array}$
 Is the partnership's inventory considered to be substantially appreciated for purposes of Sec. 751? Show your work.

Quizplus · Accepted Answer

The Answer of The Tandy Partnership owns the following assets on December 31:
 $\begin{array}{|l|c|c|}
\hline \text { Assets } & \text { Basis } & \text { Fair Market Value } \
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. } 1231 \text { property } & \underline{35,000} & \underline{70,000} \
\text { Total } & \$ 75,000 & \$ 145,000 \
\hline
\end{array}$
 Is the partnership's inventory considered to be substantially appreciated for purposes of Sec. 751? Show your work.

The Tandy Partnership Owns the Following Assets on December 31