Complete the paragraphs below that outlines, in general terms, the tax result of the distribution. This distribution is recognition by the partners. proportionate with respect to hot assets, so the receivables do not trigger ✔ ordinary income For Tyler and Anita, the cash is distributed before the accounts receivable. As the cash does not exceed their outside basis, no gain ✔ is recognized. The partners' basis for the accounts receivable is $ 25,000 X. For Vincent, the land is deemed to be distributed after the accounts receivable. He will not recognize any gain or loss on the distribution of the land.
Complete the paragraphs below that outlines, in general terms, the tax result of the distribution. This distribution is recognition by the partners. proportionate with respect to hot assets, so the receivables do not trigger ✔ ordinary income For Tyler and Anita, the cash is distributed before the accounts receivable. As the cash does not exceed their outside basis, no gain ✔ is recognized. The partners' basis for the accounts receivable is $ 25,000 X. For Vincent, the land is deemed to be distributed after the accounts receivable. He will not recognize any gain or loss on the distribution of the land.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:(3) TAV distributes a $50,000 (FMV) plot of land and $50,000 (FMV) of accounts receivable to Vincent, and $25,000 of cash and
$25,000 (FMV) of accounts receivable each to both Anita and Tyler.
Complete the paragraphs below that outlines, in general terms, the tax result of the distribution.
This distribution is
recognition by the partners.
proportionate with respect to hot assets, so the receivables do not trigger ✔ ordinary income
For Tyler and Anita, the cash is distributed before ✔✔ the accounts receivable. As the cash does not exceed their outside
basis, no gain is recognized. The partners' basis for the accounts receivable is $ 25,000 X.
For Vincent, the land is deemed to be distributed after the accounts receivable. He will not recognize any gain or loss
on the distribution of the land.
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