The AB Partnership has a machine with an FMV of $25,000 and a basis of $20,000. The partnership has taken an $8,000 depreciation on the machine. The unrealized receivable related to the machine is

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The unrealized receivable is equal to the difference between the fair market value (FMV) and the basis of the asset minus any accumulated depreciation taken. Therefore, the unrealized receivable for the AB Partnership's machine would be $25,000 - $20,000 - $8,000 = $5,000. Option A is incorrect since it only reflects the basis of the asset, option B is incorrect since it does not consider the FMV, and option D is incorrect since it only reflects the accumulated depreciation taken.

The AB Partnership Has a Machine with an FMV of $25,000