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16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20, 000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30, 000 e. Realized and recognized loss of $30,000

16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20, 000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30, 000 e. Realized and recognized loss of $30,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20,000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30,000 e. Realized and recognized loss of $30,000
Transcribed Image Text:16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20,000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30,000 e. Realized and recognized loss of $30,000
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