Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $13,000 cash. Matt receives $3,850 cash and a parcel of land with a $9,150 fair market value and a $5,000 basis to the partnership. Matcoy has no debt or hot assets. a. What is Coy's recognized gain or loss? What is the character of any gain or loss?
Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $13,000 cash. Matt receives $3,850 cash and a parcel of land with a $9,150 fair market value and a $5,000 basis to the partnership. Matcoy has no debt or hot assets. a. What is Coy's recognized gain or loss? What is the character of any gain or loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Coy and Matt are equal partners in the Matcoy
a. What is Coy's recognized gain or loss? What is the character of any gain or loss?
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