Question
Stan has an outside basis of $40,000 in the RST Partnership. His share of partnership debt is $6,000. Stan gets the following in a liquidating
Stan has an outside basis of $40,000 in the RST Partnership. His share of partnership debt is $6,000. Stan gets the following in a liquidating distribution: Basis FMV Cash $15,000 $15,000 Accounts receivable 0 40,000 Total $15,000 $55,000 (a) Does Stan have a gain or loss? (b) What is the basis of the distributed assets and Stans outside basis?
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
