Question
Question Content Area Stephanie owns a 25% interest in the capital and profits of the SNP Partnership. She receives a proportionate current distribution from SNP.
Question Content Area
Stephanie owns a 25% interest in the capital and profits of the SNP Partnership. She receives a proportionate current distribution from SNP. Stephines basis for her partnership interest is $60,000 prior to the distribution. The distribution consists of $45,000 in cash and land with a FMV of $72,000. SNP's adjusted basis in the land immediately before the distribution is $36,000. As a result of the distribution, Stephanie will recognize a gain of $57,000.
Answer:
True False
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
