Megan has a basis of $120,000 in her partnership interest. She receives a current distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan’s bases in the land and inventory are, respectively:

Megan has a basis of $120,000 in her partnership interest. She receives a current distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan’s bases in the land and inventory are, respectively:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 25CE

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Walter receives cash of $60,700 and land with a fair market value of $242,800 (adjusted basis of $145,680) in a current distribution. His basis in his partnership interest is $51,595 before the distribution. If an amount is zero, enter "0". a. What amount of gain must Walter recognize as a result of the current distribution?$ What is Walter's basis in the land received?$ b. What amount of gain must the partnership recognize as a result of the distribution?$ c. What is Walter's basis in his partnership interest immediately after the distribution?
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Misha receives a proportionate nonliquidating distribution when the basis of her partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is her basis in the distributed inventory and in her partnership interest following the distribution?
At the beginning of the year, Elsie’s basis in her partnership interest is $90,000. She receives a current distribution from the partnership consisting of $10,000 of cash, accounts receivables (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $50,000). After the distribution, Elsie’s bases in the accounts receivable, land, and partnership interest are:
Misha receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is his basis in the distributed inventory and in the partnership interest following the distribution? a.$20,000 capital gain; $0 basis in inventory; $0 basis in partnership interest. b.$20,000 ordinary income; $0 basis in inventory; $20,000 basis in partnership interest. c.$0 gain or loss; $20,000 basis in inventory; $50,000 basis in partnership interest. d.$0 gain or loss; $10,000 basis in inventory; $0 basis in partnership interest.
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
At the beginning of the year, Elsie’s basis in the E&G Partnership interest is $80,000. She receives a proportionate current (nonliquidating) distribution from the partnership consisting of $20,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $20,000, fair market value of $50,000). After the distribution, Elsie’s bases in the accounts receivable, land, and partnership interest are: a. $0; $30,000; and $50,000. b. $0; $50,000; and $30,000. c. $40,000; $30,000; and $10,000. d. $40,000; $40,000; and $0. e. $0; $20,000; and $40,000.
A and B form the equal AB partnership. A contributes cash of $20,000. B con- tributes land with a basis of $9,000 and a fair market value of $20,000. The land is a capital asset to B and has been held for over one year. Describe the tax consequences under each of the three I.R.C. §704(c) allocation methods if the partnership sells the land for either $21,000 or $19,000, assuming the partnership has adequate other income and deductions, if necessary.
Determine Julie's basis in her partnership interest and tax return effects. Also, determine Julie's basis in any property received as a distribution from the partnership
Partner Bob’s basis in his partnership interest is $50,000. What gain or loss is recognized, and what are Bob’s basis in the property received and his basis in his partnership interest, if the partnership makes the following independent proportionate nonliquidating distributions? Partnership distributes $8,000 of inventory value with a $5,000 basis. Partnership distributes two parcels of land, each with a value of $30,000. The partnership’s basis in parcel A is $40,000 and in parcel B is $20,000.
Accounting In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $5,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill's basis in the partnership interest was $190,000. How much gain or loss will Bill recognize on the distribution? а. What is Bill's basis in the inventory and the capital asset? b.
Marisa received a distribution from the LMP Partnership of property with a bisis to the partnership of $ 15,000. At the time of the distribution, Marisa's basis in the partnership was $25,000. What was her basis int he partnership after the distribution. A. $0. B. $10,000. C. $15,000. D. $25,000.