Jasmine is a 10% partner in Royals, LLP. Her outside basis in her partnership if $400.  She receives $100 cash and Whiteacre (FMV $200; basis $250) in complete liquidation of her partnership interest.  What are the tax consequences of the distribution to Jasmine?

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 12MCQ
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  1. Jasmine is a 10% partner in Royals, LLP. Her outside basis in her partnership if $400.  She receives $100 cash and Whiteacre (FMV $200; basis $250) in complete liquidation of her partnership interest.  What are the tax consequences of the distribution to Jasmine?
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