For each question on, you should assume that:

* unless expressly stated to the contrary, all events occurred in the current taxable year;

* all persons are United States citizens;

* there is no tax avoidance purpose for any transaction, and that with respect to any mortgage on any property, there was a bona fide business purpose for incurring or assuming the debt;

* unless expressly stated to the contrary, the partnership has no hot assets, has no debts or other liabilities, and does not have a Section 754 election in effect;

* each partnership is a general partnership;

* there are no special allocation provisions contained in any partnership agreement; and

* unless expressly stated to the contrary, or the context of the questions requires a conclusion that the distribution was not pro rata - such as the liquidation of the interest of just one partner, all partnership distributions were pro rata.

22. Glenda received a proportionate nonliquidating distribution from the EFG Partnership. The distribution consisted of $10,000 cash and property with an adjusted basis to the partnership of $34,000 and a fair market value of $42,000. Immediately before the distribution, Glendas adjusted basis in her partnership interest was $60,000. How much is Glendas basis in the noncash property distributed to her?

a. $10,000

b. $34,000

c. $42,000

d. $50,000

23. All of the following are separately stated items on a partners Schedule K-1 except

a. short term capital gain.

b. ordinary business income of the partnership.

c. dividends.

d. interest.

24. At the beginning of 2015, Margarets adjusted basis in her 50 percent interest in MP Partnership, a calendar year general partnership, was $10,000. During 2015, Margaret did not make any additional contributions to MP Partnership, and Margarets share of MP Partnership liabilities did not change. During 2015, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2015:

Separately stated taxable income $30,000

Tax-exempt interest $10,000

Capital loss ($20,000)

What is Margarets adjusted basis in her partnership interest in MP Partnership at the end of 2014?

a. 0.

b. $10,000.

c. $15,000.

d. $25,000.