When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory having a partnership basis of $64,750 and a fair market value of $74,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? $ b. What is the amount of any gain or loss recognized on the liquidation? She has a recognized of $ on the liquidation.
When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory having a partnership basis of $64,750 and a fair market value of $74,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? $ b. What is the amount of any gain or loss recognized on the liquidation? She has a recognized of $ on the liquidation.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 14CE
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![Exercise 11-14 (Algorithmic) (LO. 4)
When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory
having a partnership basis of $64,750 and a fair market value of $74,000. The distribution results in a liquidation of both the partnership
and her interest.
a. How much is Magdalena's basis in the inventory received?
$
b. What is the amount of any gain or loss recognized on the liquidation?
of $
She has a recognized
on the liquidation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe2022a8-181c-4428-91b3-c97f1cc479e6%2F4892c3ad-8745-426c-939c-10729efdfcb0%2Fxh041hj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-14 (Algorithmic) (LO. 4)
When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory
having a partnership basis of $64,750 and a fair market value of $74,000. The distribution results in a liquidation of both the partnership
and her interest.
a. How much is Magdalena's basis in the inventory received?
$
b. What is the amount of any gain or loss recognized on the liquidation?
of $
She has a recognized
on the liquidation.
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