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1 . Audrey, Becca, and Christine are equal partners is ABC Partnership. ABC has assets worth $ 1 2 0 , 0 0 0 and

1. Audrey, Becca, and Christine are equal partners is ABC Partnership. ABC has assets worth $120,000 and no liabilities. Audrey has an outside basis of $10,000. ABC has no income or loss for the current year (so 706(d) does not apply).
ABC distributes $2,000 cash to each partner. What are the tax consequences?

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