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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
- 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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