Using the number on the table below determine the tax treatment to the partner who receives the distribution indicated, and then assuming the partnership has made a Section 754 election, determine the Section 734 adjustment, if any.If there is none write "None" or "N/A"

In EACH case the basis of the partner's interest is $120,000 before the distribution.

The distribution consists of cash, a capital asset, and inventory as shown.If a column is blank then that type of asset was not distributed. The column for "Liquidating" indicates whether the distribution liquidated the partner's interest or not.

Situation

Cash Received

Basis of Capital Asset

Basis of Inventory

Liquidating?

A

10,000

50,000

None Distributed

No

B

40,000

80,000

None Distributed

Yes

C

200,000

None Distributed

50,000

No

D

100,000

None Distributed

30,000

Yes

E

-0-

20,000

30,000

No