Becker CPA Review 21 9 Gearty's adjusted basis in Worthington Company, a partnership, was $18,000 at the time Gearty received the following proportionate nonliquidating distributions of partnership property Cash $6,000 Land Adjusted basis 14,000 Fair market value 12,000 Inventory Adjusted basis 7,000 Fair market value 10,000 What is Gearty's tax basis in the land received from the partnership a $0 b $5,000 c $12,000 d $14,000

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Becker CPA Review 21-9 Gearty's adjusted basis in Worthington Company, a partnership, was $18,000 at the time Gearty received the following proportionate nonliquidating distributions of

Becker CPA Review 21-9

Gearty's adjusted basis in Worthington Company, a partnership, was $18,000 at the time Gearty received the following proportionate nonliquidating distributions of partnership property:

Cash	$6,000
Land
Adjusted basis	14,000
Fair market value	12,000
Inventory
Adjusted basis	7,000
Fair market value	10,000

What is Gearty's tax basis in the land received from the partnership?

a.$0

b.$5,000

c.$12,000

d.$14,000

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