Nicole's basis in her partnership interest was $160,000, including her $50,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Nicole receives $30,000 cash and accounts receivable with a $50,000 basis and a $52,000 fair market value to the partnership. What gain or loss does Nicole recognize, and what is her basis in the accounts receivable? O $60,000 loss; $50,000 basis. O $30,000 loss; $50,000 basis. O $28,000 loss; $52,000 basis. O $78,000 loss; $52,000 basis. $0 loss; $80,000 basis.
Nicole's basis in her partnership interest was $160,000, including her $50,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Nicole receives $30,000 cash and accounts receivable with a $50,000 basis and a $52,000 fair market value to the partnership. What gain or loss does Nicole recognize, and what is her basis in the accounts receivable? O $60,000 loss; $50,000 basis. O $30,000 loss; $50,000 basis. O $28,000 loss; $52,000 basis. O $78,000 loss; $52,000 basis. $0 loss; $80,000 basis.
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
Related questions
Question
![Nicole's basis in her partnership interest was $160,000,
including her $50,000 share of partnership liabilities.
The partnership decides to liquidate, and after repaying
all liabilities, distributes all remaining assets
proportionately to the partners. Nicole receives
$30,000 cash and accounts receivable with a $50,000
basis and a $52,000 fair market value to the
partnership. What gain or loss does Nicole recognize,
and what is her basis in the accounts receivable?
O $60,000 loss; $50,000 basis.
O $30,000 loss; $50,000 basis.
O $28,000 loss; $52,000 basis.
O $78,000 loss; $52,000 basis.
$0 loss; $80,000 basis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3224fa54-0ed4-42ce-abcc-9bf32fb90106%2F319a0d09-add9-4f50-a06d-eedd3f0874de%2Fbl1jorb_processed.png&w=3840&q=75)
Transcribed Image Text:Nicole's basis in her partnership interest was $160,000,
including her $50,000 share of partnership liabilities.
The partnership decides to liquidate, and after repaying
all liabilities, distributes all remaining assets
proportionately to the partners. Nicole receives
$30,000 cash and accounts receivable with a $50,000
basis and a $52,000 fair market value to the
partnership. What gain or loss does Nicole recognize,
and what is her basis in the accounts receivable?
O $60,000 loss; $50,000 basis.
O $30,000 loss; $50,000 basis.
O $28,000 loss; $52,000 basis.
O $78,000 loss; $52,000 basis.
$0 loss; $80,000 basis.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT