Question
Tony received a liquidating distribution of $75,000 in cash from Tiger Enterprises, which also liquidated. At the time of the distribution, the partnership had the
Tony received a liquidating distribution of $75,000 in cash from Tiger Enterprises, which also liquidated. At the time of the distribution, the partnership had the following balance sheet:
AB FMV
Cash $100,000 $100,000
Accounts Receivable $0 $50,000
Total $100,000 $150,000
Capital, Tony $50,000 $75,000
Capital, Sam $50,000 $75,000
Total $100,000 $150,000
Tonys basis in the partnership is $50,000. What are the tax consequences, if any of this distribution to Tony?
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
