Question
Josh is a 25% partner in ABC Partnership. ABC makes a proportionate liquidating distribution of $200,000 cash and inventory with a $15,000 fair value (inside
Josh is a 25% partner in ABC Partnership. ABC makes a proportionate liquidating distribution of $200,000 cash and inventory with a $15,000 fair value (inside basis $5,000) to Pam. ABC has no liabilities at the date of the distribution.Josh'outside basis is $190,000. What isJosh's basis in the inventory property he received fromthe distribution?
A. $15,000 B. $0 C. $10,000 D. $5,000
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
