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Please explain step by step the liquidating distribution below: problem Carlos receives a proportionate liquidating distribution consisting of $8000 cash and inventory with a basis

Please explain step by step the liquidating distribution below: problem Carlos receives a proportionate liquidating distribution consisting of $8000 cash and inventory with a basis to the partnership of $5,000 and a FMV of $6000. His basis in his partnership interest was $15,000 immediately before the distribution. Carlos assigns a basis of $7,000 to the inventory, and recognizes no gain or loss. True/False

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