Required information [The following information applies to the questions displayed below.] AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $77,750, which includes his share of the $53,800 of partnership liabilities. Trane generates $43,900 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: Inventory Land Totals Tax Basis $ 59,750 31,900 FMV $ 70,700 25,950 $ 91,650 $ 96,650 Note: Leave no answer blank. Enter zero if applicable. c. What is AJ's basis in the distributed assets? Basis Inventory Land $ 59,750
Required information [The following information applies to the questions displayed below.] AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $77,750, which includes his share of the $53,800 of partnership liabilities. Trane generates $43,900 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: Inventory Land Totals Tax Basis $ 59,750 31,900 FMV $ 70,700 25,950 $ 91,650 $ 96,650 Note: Leave no answer blank. Enter zero if applicable. c. What is AJ's basis in the distributed assets? Basis Inventory Land $ 59,750
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 21P
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Question
![Required information
[The following information applies to the questions displayed below.]
AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his
interest in Trane of $77,750, which includes his share of the $53,800 of partnership liabilities. Trane generates $43,900 of
income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate
distribution of the following assets to AJ to terminate his partnership interest:
Inventory
Land
Totals
Tax Basis
$ 59,750
31,900
FMV
$ 70,700
25,950
$ 91,650
$ 96,650
Note: Leave no answer blank. Enter zero if applicable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5328c12f-e34a-4a1d-b440-4bff5d546c4c%2F61ad5ba9-72b6-4f2c-952e-65aba02c1cc6%2Fjt9bflk_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his
interest in Trane of $77,750, which includes his share of the $53,800 of partnership liabilities. Trane generates $43,900 of
income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate
distribution of the following assets to AJ to terminate his partnership interest:
Inventory
Land
Totals
Tax Basis
$ 59,750
31,900
FMV
$ 70,700
25,950
$ 91,650
$ 96,650
Note: Leave no answer blank. Enter zero if applicable.
Transcribed Image Text:c. What is AJ's basis in the distributed assets?
Basis
Inventory
Land
$
59,750
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