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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                     $10,000           $6,000 Capital Asset 1                        $20,000           $7,000 Capital Asset 2                        $10,000           $20,000                                                 $75,000           $71,000

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                     $10,000           $6,000 Capital Asset 1                        $20,000           $7,000 Capital Asset 2                        $10,000           $20,000                                                 $75,000           $71,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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                     $10,000           $6,000

Capital Asset 1                        $20,000           $7,000

Capital Asset 2                        $10,000           $20,000

                                                $75,000           $71,000

 

Assume A’s basis in the partnership before the distribution was $60,000.  What would the bases of the assets be to A?

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