In a Proportionate Liquidating Distribution in Which the Partnership Is

question 76

Essay

In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $6,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill's basis in the partnership interest was $90,000.
a. How much gain or loss will Bill recognize on the distribution?
b. What is Bill's basis in the inventory and the capital asset?

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Definitions:

Impaired Skin Integrity

A condition where the skin is damaged, resulting in a disruption of its structure and function, which can be due to various factors including wounds, pressure sores, or burns.

Passive ROM

Range of Motion exercises where muscles are stretched and joints are moved without the patient's effort, often performed by a therapist.

Acute Phase

A period during an illness or disease characterized by sudden onset and severe symptoms, requiring immediate medical attention.

Contractures

Permanent tightening of muscles, tendons, skin, or other tissues, leading to decreased range of motion and flexibility, often a result of injury or prolonged immobility.