(10) In a liquidating distribution, Janice Rand receives cash of $40,000, inventory (basis of $18,000 and FMV of $27,566) and land (basis of 15,000 and FMV of $250,000). Her basis in her interest of Yeoman LLC is $80,000. (a) What is her gain or loss on the distribution? (b) What is her basis in the inventory? (c) What is her basis in the land? (d) What if Yeoman LLC only distributed the cash and the inventory to Janice in exchange for her partnership interest? How much gain or loss will she recognize and what would be her basis in the inventory?

(10) In a liquidating distribution, Janice Rand receives cash of $40,000, inventory (basis of $18,000 and FMV of $27,566) and land (basis of 15,000 and FMV of $250,000). Her basis in her interest of Yeoman LLC is $80,000. (a) What is her gain or loss on the distribution? (b) What is her basis in the inventory? (c) What is her basis in the land? (d) What if Yeoman LLC only distributed the cash and the inventory to Janice in exchange for her partnership interest? How much gain or loss will she recognize and what would be her basis in the inventory?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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