Question
Partner A received the following in a non-liquidating distribution: Basis FMV Cash $20,000 $20,000 Inventory Item 1 $15,000 $18,000 Inventory Item 2 $12,000 $4,000 Capital
Partner A received the following in a non-liquidating distribution:
Basis FMV
Cash $20,000 $20,000
Inventory Item 1 $15,000 $18,000
Inventory Item 2 $12,000 $4,000
Capital Asset 1 $15,000 $8,000
Capital Asset 2 $10,000 $20,000
$72,000 $70,000
Assume A’s basis in the partnership before the distribution was $35,000. What would the bases of the assets be to A?
Step by Step Solution
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The cash of 20000 would reduce the basis available to the in...
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
