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Problem 21-57 (LO 21-4, LO 21-6) (Algo)

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[The following information applies to the questions displayed below.] Cliffs basis in his Aero Partnership interest is $16,900. Cliff receives a distribution of $29,400 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:

	Tax Basis	FMV
Assets
Cash	$ 29,400	$ 29,400
Investment	16,900	16,900
Land	4,400	40,800
Totals	$ 50,700	$ 87,100
Liabilities and capital
CapitalChris	$ 16,900
CapitalCliff	$ 16,900
CapitalCooper	$ 16,900
Totals	$ 50,700

Problem 21-57 Part b (Algo)

b. If Aero has a 754 election in place, what is the amount of the special basis adjustment?