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can anyone help me with this question? 16. Partner Z received a current distribution from the XYZ Partnership consisting of $3,000 cash and partnership inventory
can anyone help me with this question?
16. Partner Z received a current distribution from the XYZ Partnership consisting of $3,000 cash and partnership inventory (FMV $10,000 and basis $7,800). The distribution did not change Z's profit and loss sharing ratio. Immediately prior to the distribution, Z's outside basis in his partnership interest was $11,000. Because of the distribution Z must: a. b. Recognize no gain or loss and reduce outside basis to $8,000. c. d. Recognize no gain or loss and reduce outside basis to $200. e. Recognize a $2,000 gain and reduce outside basis to zero. Recognize no gain or loss and reduce outside basis to zero. Recognize a $200 loss and reduce outside basis to zero Step by Step Solution
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