The Tandy Partnership owns the following assets on December 31:
$\begin{array}{|l|c|c|}
\hline\text { Assets }&\text { Basis }&\text { Fair Market Value }\
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. 1231 property } & 35,000 & 70,000 \
\text { Total } & \$ 75,000 & \$ 145,000\\hline
\end{array}$ 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:
 $\begin{array}{|l|c|c|}
\hline\text { Assets }&\text { Basis }&\text { Fair Market Value }\
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. 1231 property } & 35,000 & 70,000 \
 \text { Total } & \$ 75,000 & \$ 145,000\\hline
\end{array}$ 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:
 $\begin{array}{|l|c|c|}
\hline\text { Assets }&\text { Basis }&\text { Fair Market Value }\
\hline\text { Cash } & \$ 20,000 & \$ 20,000 \
\text { Unrealized receivables } & 0 & 30,000 \
\text { Inventory } & 20,000 & 25,000 \
\text { Land, Sec. 1231 property } & 35,000 & 70,000 \
 \text { Total } & \$ 75,000 & \$ 145,000\\hline
\end{array}$ 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