Question: When Teris 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,

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.

a. Determine the recognized gain or loss to the partnership as a result of this distribution.

b. Determine the recognized gain or loss to Teri as a result of the distribution.

c. Determine Teri’s basis in the land, account receivable, and TMF Partnership after the distribution.

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