When Teri's outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash, an account receivable (fair market value of $60,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $60,000, inside basis to the partnership of $80,000). Teri remains a partner in the partnership, and the distribution is proportionate to the partners.

If an amount is zero, enter "0".

a. Complete the table below by using the format of Concept Summary 11.2 to calculate the effects of the distribution.

Note: If you use Excel to set up the table, designate the input area for the amounts on lines 1, 2, 5, and 8. Code the formulas shown in the Calculations section of the concept summary to calculate the amounts in the remaining lines. You will use "sum," "min," and "max" formulas.

Input
	Line 1	Partner's outside basis
	Line 2	Step 1. Cash and deemed cash distributed
	Line 5	Step 2. Partnership's basis in distributed hot assets
	Line 8	Step 3. Partnership's basis in other distributed property
Proportionate Liquidating Distribution Calculations
	Line 1	Partner's outside basis
	Line 2	Step 1. Cash and deemed cash distributed
	Line 3	Gain recognized by partner
	Line 4	Partner's remaining outside basis
	Line 5	Step 2. Partnership's basis in distributed hot assets
	Line 6	Partner's basis in distributed hot assets
	Line 7	Partner's remaining outside basis
	Line 8	Step 3. Partnership's basis in other distributed property
	Line 9	Partner's basis in other distributed property
	Line 10	Partner's remaining outside basis

b. How much gain or loss will Teri recognize as a result of the distribution? Teri recognizes no gain or loss on the distribution.

c. How much is Teri's basis in the land, account receivable, and TMF Partnership after the distribution?

Land
Accounts receivable
Partnership

What can you conclude regarding Teri's basis in the assets and the fair market value she received? The distribution results on these assets.

d. How would your answer to part (c) change if, instead, the partnership's basis in the land was $10,000 and its fair market value was $30,000 (and the cash and unrealized receivable distributions do not change)?

Land
Accounts receivable
Partnership