Liquidations: Determine whether the following statements are True or False: TRUE FALSE 1. A liquidating cash distribution may reduce the recipient partner's basis below zero. 2. A liquidating distribution of appreciated inventory reduces the recipient partner's basis in his partnership interest to below zero.

3. If a partner has a basis of $15,000 in a partnership, and receives a non liquidating distribution of land with an adjusted basis of $16,000, but a FMV of $18,000, there will be a gain of $1,000. 4. A non liquidating distribution of only cash, may result in a deductible loss. 5. A liquidating distribution of only land, may result in a deductible loss. 6. In a nonliquidating distribution of property, the partner's basis must equal zero. 7. In a nonliquidating distribution, if there is sufficient basis to the partner, the property received will have the same basis to the partner as the property had to the partnership. 8. A partner recognizes a gain on a distribution only to the extent that cash received exceeds the partner's basis in the partnership.

9. Loss is recognized by the partner who receives a nonliquidating distribution of cash, when the amount of cash is less than his basis in the partnership interest before the distribution. 10. If a partner has a basis of $15,000 in a partnership, and receives a nonliquidating distribution of land with an adjusted basis of $16,000, but a FMV of $18,000, the land will have a basis of $15,000.