The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Cash Accounts receivable Inventory Totals Tax Basis $ 48,840 16,280 85,800 $ 150,920 FMV $ 48,840 32,560 126,720 $ 208,120 On December 31, Taurin distributes $16,280 of cash, $10,853 (FMV) of accounts receivable, and $42,240 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $42,827.
The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Cash Accounts receivable Inventory Totals Tax Basis $ 48,840 16,280 85,800 $ 150,920 FMV $ 48,840 32,560 126,720 $ 208,120 On December 31, Taurin distributes $16,280 of cash, $10,853 (FMV) of accounts receivable, and $42,240 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $42,827.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:
Cash
Accounts receivable
Inventory
Totals
Problem 10-46 Part b (Algo)
On December 31, Taurin distributes $16,280 of cash, $10,853 (FMV) of accounts receivable, and $42,240 (FMV) of
inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest
immediately prior to the distribution is $42,827.
Cash
Accounts
receivable
b. What is Emma's basis in the distributed assets?
Note: Round your intermediate and final answers to the nearest whole dollar amount.
Inventory
Tax Basis
$ 48,840
16, 280
85,800
$ 150,920
Basis
Answer is not complete.
$ 16,280
FMV
$ 48,840
32,560
126,720
$ 208,120
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