2. Stephanie receives a proportionate non-liquidating distribution from the QRS Partnership. The distribution consists of $60,000 cash and IRC 1231 properties A and B with adjusted bases (AB) to the partnership of $15,000 each and fair market values (FMV) of $15,000 (Property A) and $10,000 (Property B). The QRS also has other IRC 1231 properties X and Y. X has an AB and FMV of $15,000. Y has an AB and FMV of $10,000 and $10,000. Immediately before the distribution, Stephanies adjusted basis for her partnership interest is $80,000. Stephanies basis in the noncash property received is:

a. $15,000.

b. $20,000.

c. $25,000.

d. $30,000.

e. None of the above.

3. Referring to question no. 2 above, after the distribution, what are Stephanies adjusted basis in each A and B, respectively?

a. $15,000 and $15,000

b. $15,000 and $10,000

c. $10,000 and $10,000

d. $12,000 and $8,000

e. $15,000 and $5,000

f. $12,500 and $7,500

g. None of the above.

4. Referring to question no. 2 above, assume that QRS Partnership has an IRC 754 election in effect prior to the distributions to Stephanie, what will be the QRS Partnerships adjusted tax bases be in the IRC 1231 assets X and Y, respectively, after the distributions to Stephanie?

a. $10,000 and $10,000

b. $17,250 and $12,250

c. $15,000 and $15,000

d. $20,000 and $10,000

e. $18,000 and $12,000

f. None of the above.