b. How does your answer to (a) change if C waits for six years and then sells the distributed inventory for $40,000 ? 10-26 Optional Adjustment to Basis-Current Proportionate Distribution. Refer to Problem 1024(b) and (c). The partnership has a $754 election in effect. Determine the 734 basis adjustment for the partnership assets. 10-27 Current Distribution-Proportionate. A partnership is curtailing some of its operations and decides to make a proportionate distribution of excess assets to its two equal partners. P's share of each of the distributed assets is as follows: Calculate P's recognized gain or loss, basis in each asset, and basis in his partnership interest after distribution if P's basis in the partnership before distribution is a. $20,000, b. $14,000, or c. $8,000. 10-28 Optional Adjustment to Basis-Current Proportionate Distribution. Refer to Problem 10-27. The partnership has a 754 election in effect. Determine the 734 basis adjustment for the partnership assets. estate to partner S. Immediately prior to distribution, the real estate had a fair market value of $232,000 and an inside basis of $205,000, and S's outside basis in its partnership interest was $83,000. The RST Partnership still owns Greenacre, which has a current fair market value of $225,000. What are the tax consequences of the distribution to S and the RST Partnership? b. How would your answer to (a) change if S's contribution of the asset occurred nine (rather than two) years ago? 0-32 Liquidating Distribution-Proportionate. Immediately prior to its termination, the FN Partnership owned the following assets: F, a 50% partner, receives a one-half interest in each of the assets in complete liquidation of her partnership interest. F's outside basis in this interest is $45,000. a. Calculate F's basis for each asset received in the distribution. b. How would your answer to (a) change if F's outside basis in her partnership interest is $60,000 ? Partner C's preliquidation basis in her partnership interest was $125,000. How and Blackacre? much gain or loss must C recognize on receipt of her one-third share of ABC's assets, and what basis will C take in her undivided interests in Whiteacre and Blackacre? asis of Distributed Property-Liquidating Distribution. After reduction for a disbution of cash and the required allocation of basis to unrealized receivables and ventory received in a liquidating distribution from the HIJ Partnership, Partner J has an outside basis of $100,000. J also receives the following capital assets as part of the liquidating distribution: What basis does J take in each of the capital assets following this distribution? 10-35 Section 734 Basis Adjustment. Partner F received a liquidating distribution of $9,000 cash from the EFG Partnership. F's predistribution outside basis was $12,000. Assume that EFG has a 754 election in effect. Partnership EFG owns the following assets after the distribution to F
