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Michelle has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Michelle receives $5,000 cash and a car

Michelle has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Michelle receives $5,000 cash and a car (a 1231 asset to the partnership) having a basis of $20,000 to the partnership and a fair market value of $30,000. For our purposes, disregard any potential depreciation recapture on the car.

What basis will Michelle take in the car?

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