Partner A received the following in a nonliquidating distribution: Basis FMV Cash $20,000 $20,000 Inventory Item 1 $15,000 $18,000 Inventory Item 2 $12,000 $4,000 Capital Asset 1 $15,000 $8,000 Capital Asset 2 $10,000 $20,000 $72,000 $70,000 Assume A’s basis in the partnership before the distribution was $35,000. What would the bases of the assets be to A?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Partner A received the following in a nonliquidating distribution: Basis FMV Cash $20,000 $20,000 Inventory Item 1 $15,000 $18,000 Inventory Item 2 $12,000 $4,000 Capital Asset 1 $15,000 $8,000 Capital Asset 2 $10,000 $20,000 $72,000 $70,000 Assume A’s basis in the partnership before the distribution was $35,000. What would the bases of the assets be to A?    

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