Dan Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 152

Multiple Choice

Dan receives a proportionate nonliquidating distribution when the basis of his partnership interest is $30,000.The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500.Dan's basis in the noncash property is:

• A)$26,500.
• B)$24,000.
• C)$20,000.
• D)$10,000.
• E)None of the above.

---

Definitions:

Relay Valve

A component in pneumatic systems that speeds up the build-up and release of air pressure in brake systems, ensuring faster response times.

Tractor Drive Axle Brakes

These are the braking systems specifically designed for the drive axles of a tractor, playing a critical role in the overall braking performance and safety of the vehicle.

Wheel Seal

A device used to seal the gap between the wheel and the axle, preventing contamination and leakage of lubricants, thus protecting the bearing.

Friction Facings

Friction facings are materials applied to the surfaces of clutches, brakes, and other components where friction is used to transmit or impede motion, providing the necessary resistance for operation.