Partnership Distribution

Andy has an outside basis in Canine Partnership of $520,000.The partnership distributes the following assets to Andy in a proportionate, non-liquidating distribution:

• Land (fair market value of $6000,000 and basis to partnership of $240,000
• Cash of $100,000
• Accounts receivable (fair market value of $200,000 and basis of $0)

1. How much gain or loss will Andy recognize from this distribution?
2. How much gain of loss will Canine Partnership recognize from this distribution?
3. What is Andy'sbasis in the land?What is Andy's basis in the accounts receivable?
4. What is Andy's outside basis in the partnership following the distribution?
5. How would your answers to the above questions change if the distribution were a liquidating distribution?