At the beginning of the year, Elsie’s basis in her partnership interest is $90,000.   She receives a current distribution from the partnership consisting of $10,000 of        cash, accounts receivables (basis of $0, fair market value $40,000), and land       (basis of $30,000, fair market value of $50,000). After the distribution, Elsie’s bases in the accounts receivable, land, and partnership interest are:

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.