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A is a partner in the equal ABC partnership, and is distributed a note from the partnership for $30,000, payable by the partnership.A then sells
A is a partner in the equal ABC partnership, and is distributed a note from the partnership for $30,000, payable by the partnership.A then sells the note for $27,000.A's basis in the partnership when the note was distributed was $25,000.What are the tax effects to A?What would the tax effects have been if A was just distributed $30,000 cash instead? (Include the tax code section which applies.)
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