Question
At the end of last year, Lisa, a 40% partner in the five-person LAMEC partnership, has an outside basis of $60,000 including her $30,000 share
At the end of last year, Lisa, a 40% partner in the five-person LAMEC partnership, has an outside basis of $60,000 including her $30,000 share of LAMEC debt. On January 1 of the current year, Lisa sells her partnership interest to MaryLynn for a cash payment of $45,000 and the assumption of her share of LAMECs debt. If LAMEC has $100,000 of unrealized receivables as of the sale date, what is the amount of Lisas ordinary income recognized as a result of the sale?
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
