Morse is a 50% partner in Ecco Partnership. Morse's tax basis in Ecco on January 2 was $4,000. Ecco did not have unrealized receivables, appreciated inventory, or properties that had been contributed by its partners. On December 31, Ecco made an $11,000 nonliquidating cash distribution to Morse. For the year, Ecco reported $10,000 of ordinary business income. What is the amount of the net capital gain realized by Morse from the cash distribution

$2,000

Explanation:

Calculation for the amount of the net capital gain realized by Morse from the cash distribution

First step is to calculate the basis prior to the distribution

Basis prior to the distribution=[$4,000+(50%* $10,000)]

Basis prior to the distribution=$4,000+$5,000

Basis prior to the distribution=$9,000

Now let calculate net capital gain realized by Morse from the cash distribution

Net capital gain realized from cash distribution=($9,000-$11,000)

Net capital gain realized from cash distribution=$2,000

Therefore the amount of the net capital gain realized by Morse from the cash distribution will be $2,000

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.