When Abe's outside basis in the Vacuna Partnership is $211,000, the partnership distributes to him $36,000 cash, three accounts receivable (fair market value of $61,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $484,000, inside basis to the partnership of $420,000). Abe remains a partner in the partnership, and the distribution is proportionate to the partners. If an amount is zero, enter "0". a. Does the partnership recognize a gain or loss as a result of this distribution? (gain, loss, no gain or loss) b. As a result of the distribution, Abe recognizes .(a gain, a loss, neither a gain or loss) c. In what order are the assets distributed to Abe? (land, accounts receivable, cash) Calculate Abe's basis in the land, in the accounts receivable, and in his partnership interest immediately following the distribution. Accounts receivable: Land: Partnership interest:
When Abe's outside basis in the Vacuna Partnership is $211,000, the partnership distributes to him $36,000 cash, three accounts receivable (fair market value of $61,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $484,000, inside basis to the partnership of $420,000). Abe remains a partner in the partnership, and the distribution is proportionate to the partners. If an amount is zero, enter "0". a. Does the partnership recognize a gain or loss as a result of this distribution? (gain, loss, no gain or loss) b. As a result of the distribution, Abe recognizes .(a gain, a loss, neither a gain or loss) c. In what order are the assets distributed to Abe? (land, accounts receivable, cash) Calculate Abe's basis in the land, in the accounts receivable, and in his partnership interest immediately following the distribution. Accounts receivable: Land: Partnership interest:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When Abe's outside basis in the Vacuna
If an amount is zero, enter "0".
a. Does the partnership recognize a gain or loss as a result of this distribution? (gain, loss, no gain or loss)
b. As a result of the distribution, Abe recognizes .(a gain, a loss, neither a gain or loss)
c. In what order are the assets distributed to Abe? (land, accounts receivable, cash)
Calculate Abe's basis in the land, in the accounts receivable, and in his partnership interest immediately following the distribution.Accounts receivable:
Land:
Partnership interest:
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