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Assume the ABC partnership distributes $5,000 cash, $1,000 in unrealized receivables (zero inside basis), $3,000 in inventory ($1,000 inside basis) and a piece of machinery

Assume the ABC partnership distributes $5,000 cash, $1,000 in unrealized receivables (zero inside basis), $3,000 in inventory ($1,000 inside basis) and a piece of machinery (FMV of $3,000 and $500 inside basis) to a partner who has an outside basis of $10,000. How are these distributions taxed to the receiving partner?

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