Question
18. LeBrons interest in the LJ Partnership is liquidated when his basis in the interest is $40,000. He receives a liquidating distribution of $25,000 cash
18. LeBrons interest in the LJ Partnership is liquidated when his basis in the interest is $40,000. He receives a liquidating distribution of $25,000 cash and inventory with a basis of $10,000 and an FMV of $15,000. LeBron will recognize
A) no gain or loss.
B) $2,000 capital loss.
C) $2,000 ordinary loss.
D) $5,000 capital loss.
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Cost Accounting Principles And Applications
Authors: Horace R. Brock
5th Edition
0070081522, 978-0070081529
