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Dolly receives a proportionate, nonliquidating distribution from the Melon Partnership. The distribution consists of $40,000 cash and property with an adjusted basis to the partnership
Dolly receives a proportionate, nonliquidating distribution from the Melon Partnership. The distribution consists of $40,000 cash and property with an adjusted basis to the partnership of $140,000 and a fair market value of $170,000. Immediately before the distribution, Dolly's adjusted basis for her partnership interest is $160,000. Dolly's basis in the noncash property received is: Select one:
a. $170,000.
b. $120,000.
c. $140,000.
d. $ 40,000.
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