Question
ABC Partnership makes a proportionate liquidating distribution to James of Cash of $200,000, inventory worth $93,000 with a basis of $40,000 and accounts receivable worth
ABC Partnership makes a proportionate liquidating distribution to James of Cash of $200,000, inventory worth $93,000 with a basis of $40,000 and accounts receivable worth $50,000 with a basis of $25,000. James outside basis in the partnership is $210,000. What is James recognized gain or loss on the distribution?
A. $55,000
B. $93,000
C. $0 D. $293,000
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne Mowen
2nd Edition
0538864451, 978-0538864459
