Question
Basis FMV Cash 24000 24000 accounts rec 0 18000 equipment 0 6000 building 42000 45000 land 6000 9000 total 72000 102000 Accounts payable(with recourse debt)
| Basis | FMV | |
| Cash | 24000 | 24000 |
| accounts rec | 0 | 18000 |
| equipment | 0 | 6000 |
| building | 42000 | 45000 |
| land | 6000 | 9000 |
| total | 72000 | 102000 |
| Accounts payable(with recourse debt) | 30000 | 30000 |
| A | 14000 | 24000 |
| B | 14000 | 24000 |
| C | 14000 | 24000 |
| TOTAL | 72000 | 102000 |
1. C Left the partnership and received $8,000 in accounts receivable and $16,000 in cash. What is Cs recognized gain or loss on the liquidating distribution?
2.If the partnership did not make the section 743 election, how would this affect the price C would receive for his interest? Explain.
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Modern Auditing
Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler
5th Edition
0471542830, 9780471542834
