Question
Kim's basis in a partnership is $40;000. Kim receives a pro rata liquidating distribution consisting of $21,000 cash and her proportionate share of land #1
Kim's basis in a partnership is $40;000. Kim receives a pro rata liquidating distribution consisting of $21,000 cash and her proportionate share of land #1 with a basis of $5,000 to the partnership and a fair market value of $10,000 and land #2 with a basis of$6,000 and a fair market value of $5,000.
Required:
- What gain or loss, if any, would Kim recognize upon receiving the distribution?
- What basis will Kim receive in land # 1 ?
- What basis will Kim receive in land #2?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740460, 978-1119740469
