Question
Sally receives cash of $24,000 and a piece of land with a fair market value of $85,000 (adjusted basis of $60,000) in a current distribution.
Sally receives cash of $24,000 and a piece of land with a fair market value of $85,000 (adjusted basis of $60,000) in a current distribution. Her basis in his partnership interest is $20,000 before the distribution. Answer the following question and show your calculations.
- What amount of gain must Sally recognize as a result of the current distribution?
- What amount of gain must the partnership recognize as a result of the distribution?
- What is Sally's basis in his partnership interest immediately after the distribution?
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
