Question
The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Tax Basis FMV Cash $ 45,480 $
The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:
| Tax Basis | FMV | |
|---|---|---|
| Cash | $ 45,480 | $ 45,480 |
| Accounts receivable | 15,160 | 30,320 |
| Inventory | 81,600 | 120,840 |
| Totals | $ 142,240 | $ 196,640 |
On December 31, Taurin distributes $15,160 of cash, $10,107 (FMV) of accounts receivable, and $40,280 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emmas basis in her partnership interest immediately prior to the distribution is $40,353.
B. What is Emmas basis in the distributed assets? (Round your intermediate and final answers to the nearest whole dollar amount.)
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
