Dolly receives a proportionate, nonliquidating distribution fromthe Melon Partnership. The distribution consists of $40,000 cashand property with an adjusted basis to the partnership of $140,000and a fair market value of $170,000. Immediately before thedistribution, Dolly's adjusted basis for her partnership interestis $160,000. Dolly's basis in the noncash property received is:Select one:
a. $170,000.
b. $120,000.
c. $140,000.
d. $ 40,000.
Dolly receives a proportionate, nonliquidating distribution fromthe Melon Partnership. The distribution consists of $40,000 cashand property with an adjusted basis to the partnership of $140,000and a fair market value of $170,000. Immediately before thedistribution, Dolly's adjusted basis for her partnership interestis $160,000. Dolly's basis in the noncash property received is:Select one:
a. $170,000.
b. $120,000.
c. $140,000.
d. $ 40,000.
Related questions
1. Karli owns a 25% capital and profitsinterest in the calendar-year KJDV Partnership. Her adjusted basisfor her partnership interest on July 1 of the current year is$200,000. On that date, she receives a proportionate nonliquidatingdistribution of the following assets:
Partnershipâs Basis in Asset | Assetâs Fair Market Value | |
Cash | $120,000 | $120,000 |
Inventory | 50,000 | 60,000 |
Land | 70,000 | 100,000 |
â
| a. Calculate Karliâs recognized gain or loss on the distribution, ifany. b. Calculate the partnership gain/loss from the distribution c. Calculate Karliâs basis in the inventory received d. Calculate Karliâs basis in land received. The land is a capitalasset e. Calculate Karliâs Outside basis in the partnership interest afterthe distribution |
