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Kevin and Mary are 50/50 partners in ABC partnership with each having an outside basis in their partnership interest of $160,000. The partnership distributes cash
Kevin and Mary are 50/50 partners in ABC partnership with each having an outside basis in their partnership interest of $160,000. The partnership distributes cash of $80,000 to Kevin and Inventory with a basis of $40,000 and a FMV of $80,000 to Mary. Do Kevin or Mary have any gain or loss on the distributions? What basis does each take in the assets received?
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