Pelican Partnership makes a current distribution to Prabhakar, consisting of $30,000 in cash and capital assets worth

Question:

Pelican Partnership makes a current to Prabhakar, consisting of $30,000 in cash and capital assets worth $10,000 (partnership basis $8,000). Immediately prior to the Prabhakar€™s outside basis in the partnership was $35,000. What amount of gain will Prabhakar recognize on the and what is Prabhakar€™s resulting outside basis in the partnership?

Outside Basis in Partnership Recognized Gain $0 $5,000 $0 $0 $3,000 a. b. $0 ($3,000) C. $0 d.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...