Required information

Problem 21-48 (LO 21-4) (Algo)

Skip to question

[The following information applies to the questions displayed below.]

Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $69,250 in cash and land with a fair market value of $109,500 (tax basis of $132,500). Immediately before the distribution, Lonnies basis in his partnership interest is $426,000, which includes his $64,000 share of partnership debt. Highland Partnership does not hold any hot assets.

Problem 21-48 Part b (Algo)

b. What is Lonnies basis in the land?