1. The primary purpose of the partnership agreement is to document the arrangement among the partners regarding formation, operation, and liquidation of the partnership; allocations of profits, losses, and distributions, and other matters. 2. A liquidating distribution occurs either when 1) the partnership liquidates and terminates the interests of all the partners, or 2) an ongoing partnership distributes property in liquidation of a single partner's interest. 3. On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (adjusted basis of $200,000; fair market value of $150,000) in exchange for her interest in the partnership. Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation? a. Jason recognizes a $20,000 gain on his property transfer. b. Jason has a $200,000 tax basis for his partnership interest. c. Anna has a $200,000 tax basis for her partnership interest. d. Anna realizes and recognizes a $50,000 loss. e. The partnership has a $200,000 adjusted basis in the land contributed by Anna. 4. Dan receives a proportionate current (non-liquidating) distribution when the basis of his partnership interest is $30,000. The distribution consists of $20,000 in cash and property with an adjusted basis to the partnership of $14,000 and a fair market value of $16,500. Dan's basis in the noncash property is: a. $26,500 b. $24,000 c. $20,000. d. $10,000. e. $0. Page 1 of 7