Question
Mars Partnership makes the following current (non-liquidating) distribution to its two equal partners: Timothy and Patrick. Timothy receives inventory with a fair market value of
Mars Partnership makes the following current (non-liquidating) distribution to its two equal partners: Timothy and Patrick. Timothy receives inventory with a fair market value of $60,000 ( basis $40,000) and Patrick receives unrealized cash basis receivables of $60,000 fair market value (cost basis zero). This is an example of a disproportionate current distribution.
a. True
b. False
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
