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Anna receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Anna? What is Anna's basis in the distributed assets?

Anna receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Anna? What is Anna's basis in the distributed assets?

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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2. Anna is a one-third partner in the ANNA partnership (calendar year-end). Anna decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Total Basis FMV $170,000 $170,000 -0- 240,000 80,000 120,000 300,000 360,000 $550,000 $890,000 Anna receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Anna? What is Anna's basis in the distributed assets?
Transcribed Image Text:2. Anna is a one-third partner in the ANNA partnership (calendar year-end). Anna decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Total Basis FMV $170,000 $170,000 -0- 240,000 80,000 120,000 300,000 360,000 $550,000 $890,000 Anna receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Anna? What is Anna's basis in the distributed assets?
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