Kathy is a 25% partner in the kdp partnership and receives $137,000 cash in complete liquidation of her partnership interest. kathy's outside basis immediately before the distribution is $143,000. kdp currently has a §754 election in effect and has no hot assets or liabilities. which of the following statements is true? a. kdp will step up the basis of its assets by $6,000 and kathy will recognize a $6,000 loss on the distribution. b.kdp will step up the basis of its assets by $6,000 and kathy will recognize a $6,000 gain on the distribution. c.kdp will step down the basis of its assets by $6,000 and kathy will recognize a $6,000 loss on the distribution. d.kdp will step down the basis of its assets by $6,000 and kathy will recognize a $6,000 gain on the distribution.

Post test question number 9 for entering the job market

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?