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The XYZ partnership has three partners. Each partner's adjusted basis in the partnership interest owned by that partner was $150,000 on the first day of the current year. The partnership reported net income for the current year of $90,000 (no separately stated items to take into account). The partnership distributed pro rata to each partner $20,000 in cash plus identical shares of stock that each had a fair market value of $30,000 and a basis to the partnership of $15,000. How much is includible in each partner's gross income for the year as the result of the distribution? a. $90,000 b. $60,000 c. $30,000 d. $20,000

The XYZ partnership has three partners. Each partner's adjusted basis in the partnership interest owned by that partner was $150,000 on the first day of the current year. The partnership reported net income for the current year of $90,000 (no separately stated items to take into account). The partnership distributed pro rata to each partner $20,000 in cash plus identical shares of stock that each had a fair market value of $30,000 and a basis to the partnership of $15,000. How much is includible in each partner's gross income for the year as the result of the distribution? a. $90,000 b. $60,000 c. $30,000 d. $20,000

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 22CE
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The XYZ partnership has three partners. Each partner's adjusted basis in the partnership interest owned by that partner was $150,000 on the first day of the current year. The partnership reported net income for the current year of $90,000 (no separately stated items to take into account). The partnership distributed pro rata to each partner $20,000 in cash plus identical shares of stock that each had a fair market value of $30,000 and a basis to the partnership of $15,000. How much is includible in each partner's gross income for the year as the result of the distribution? a. $90,000 b. $60,000 c. $30,000 d. $20,000
Transcribed Image Text:The XYZ partnership has three partners. Each partner's adjusted basis in the partnership interest owned by that partner was $150,000 on the first day of the current year. The partnership reported net income for the current year of $90,000 (no separately stated items to take into account). The partnership distributed pro rata to each partner $20,000 in cash plus identical shares of stock that each had a fair market value of $30,000 and a basis to the partnership of $15,000. How much is includible in each partner's gross income for the year as the result of the distribution? a. $90,000 b. $60,000 c. $30,000 d. $20,000
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