Question
Required information [The following information applies to the questions displayed below.] Davids basis in the Jimsoo Partnership is $65,000. In a proportionate liquidating distribution, David
Required information
[The following information applies to the questions displayed below.] Davids basis in the Jimsoo Partnership is $65,000. In a proportionate liquidating distribution, David receives cash of $9,400 and two capital assets: (1) Land A with a fair market value of $24,800 and a basis to Jimsoo of $19,600, and (2) Land B with a fair market value of $11,800 and a basis to Jimsoo of $19,600. Jimsoo has no liabilities.
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c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain or loss)?
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c2. What is David's basis in distributed assets?
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