7.

Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:

Partner Outside Basis

Adam $ 10,000

Alyssa 10,000

4. On December 31 of the current year, the partnership makes a pro-rata operating distribution of:

Partner Distribution

Adam Cash $ 16,000

Alyssa Cash 8,000

Property 8,000 (FMV) ($6,000 basis to partnership)

What is the amount of Adams recognized gain or loss?

8. Same facts as the prior problem, what is the amount of Alyssas recognized gain or loss?

9.Rufus is a one-quarter partner in the Adventure partnership. On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest. Adventure has only capital assets and no liabilities at the date of the distribution. Rufus basis in his partnership interest is $20,000. What is the amount Rufus recognized gain or loss?