Katrina is a one-third partner in the KYR partnership (calendar year-end). Katrina 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:     Basis   FMV Cash $180,000   $180,000 Accounts receivable -0-   240,000 Stock investment 75,000   120,000 Land 300,000   360,000 Totals $555,000   $900,000               Katrina receives one-third of each of the partnership assets. She has a basis in her partnership interest of $110,000. What is the amount and character of any recognized gain or loss to Katrina? What is Katrina's basis in the distributed assets?   Please calculate step by step. Do not give answer in image

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Katrina is a one-third partner in the KYR partnership (calendar year-end). Katrina 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:

 

 

Basis

 

FMV

Cash

$180,000

 

$180,000

Accounts receivable

-0-

 

240,000

Stock investment

75,000

 

120,000

Land

300,000

 

360,000

Totals

$555,000

 

$900,000

 

 

         

Katrina receives one-third of each of the partnership assets. She has a basis in her partnership interest of $110,000.

What is the amount and character of any recognized gain or loss to Katrina? What is Katrina's basis in the distributed assets?

 

Please calculate step by step.

Do not give answer in image 
 
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