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The SLD Partnership distributes the following property to Swindler in a distribution that liquidates Swindlers interest in the partnership. Assume that no Sec. 754 election

  1. The SLD Partnership distributes the following property to Swindler in a distribution that liquidates Swindlers interest in the partnership. Assume that no Sec. 754 election is in effect. Swindlers basis in his partnership interest before the distribution is $69,000. The adjusted bases and FMVs of the distributed property to the partnership before the distribution are as follows:

Assets

Basis

FMV

Cash

$5,000

$5,000

Inventory

16,000

18,000

Capital Asset 1

20,000

30,000

Capital Asset 2

40,000

35,000

Total

81,000

88,000

Determine Swindlers basis in each distributed asset. Show computations for full credit

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