Katrina receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Katrina? What is Katrina's basis in the distributed assets? 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: Cash Accounts receivable Stock investment Land Totals Basis $180,000 -0- 75,000 300,000 $555,000 FMV $180,000 240,000 120,000 360,000 $900,000
Katrina receives one-third of each of the partnership assets. She has a basis in her partnership interest of $250,000. What is the amount and character of any recognized gain or loss to Katrina? What is Katrina's basis in the distributed assets? 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: Cash Accounts receivable Stock investment Land Totals Basis $180,000 -0- 75,000 300,000 $555,000 FMV $180,000 240,000 120,000 360,000 $900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Katrina receives one-third of each of the partnership assets. She has a basis in her partnership interest of
$250,000. What is the amount and character of any recognized gain or loss to Katrina? What is Katrina's
basis in the distributed assets?
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:
Cash
Accounts receivable
Stock investment
Land
Totals
Basis
$180,000
-0-
75,000
300,000
$555,000
FMV
$180,000
240,000
120,000
360,000
$900,000
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