Sophia has a basis in her partnership interest of $5,000. Sohpia receives an operating distribution of $4,000 cash and a computer (not inventory) with an inside basis of $3,000 Taxable income: Outside basis after distribution: Basis in the equipment received: Jalen owns a 30% interest in a partnership for which he has an outside basis of $5,000. During the year, the partnership reduced its total liabilities by $10,000. a) What impact does the reduction in liabilities have on Jalen's outside basis? b) What if the liability reduction totaled $20,000 ? Ryan has basis in his partnership interest of $5,000. Ryan receives an operating distribution of inventory worth $3,000 with a basis of $4,000 and a desk (not inventory) worth $2,000 with a basis of 55,000. Taxable income: Outside basis after distribution: Basis in the inventory received: Basis in the desk received:
Sophia has a basis in her partnership interest of $5,000. Sohpia receives an operating distribution of $4,000 cash and a computer (not inventory) with an inside basis of $3,000 Taxable income: Outside basis after distribution: Basis in the equipment received: Jalen owns a 30% interest in a partnership for which he has an outside basis of $5,000. During the year, the partnership reduced its total liabilities by $10,000. a) What impact does the reduction in liabilities have on Jalen's outside basis? b) What if the liability reduction totaled $20,000 ? Ryan has basis in his partnership interest of $5,000. Ryan receives an operating distribution of inventory worth $3,000 with a basis of $4,000 and a desk (not inventory) worth $2,000 with a basis of 55,000. Taxable income: Outside basis after distribution: Basis in the inventory received: Basis in the desk received:
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 48P
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Transcribed Image Text:Sophia has a basis in her partnership interest of $5,000. Sohpia
receives an operating distribution of $4,000 cash and a
computer (not inventory) with an inside basis of $3,000
Taxable income:
Outside basis after distribution:
Basis in the equipment received:
Jalen owns a 30% interest in a partnership for which he has an
outside basis of $5,000. During the year, the partnership reduced
its total liabilities by $10,000.
a) What impact does the reduction in liabilities have on Jalen's
outside basis?
b) What if the liability reduction totaled $20,000 ?
Ryan has basis in his partnership interest of $5,000. Ryan
receives an operating distribution of inventory worth $3,000 with
a basis of $4,000 and a desk (not inventory) worth $2,000 with a
basis of 55,000.
Taxable income:
Outside basis after distribution:
Basis in the inventory received:
Basis in the desk received:
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