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Ellen is a 20% general partner in Hein Products, a general partnership. Ellen's tax basis in her partnership interest is $45,000, consisting of her $30,000
Ellen is a 20% general partner in Hein Products, a general partnership. Ellen's tax basis in her partnership interest is $45,000, consisting of her $30,000 contribution to partnership capital and her $15,000 share of the partnership's liabilities. If she receives a cash distribution of $75,000 in complete liquidation of her interest in the partnership, how much income will she recognize?
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