Atiqa Receives a Nonliquidating Distribution of Land from Her Partnership

question 123

Multiple Choice

Atiqa receives a nonliquidating distribution of land from her partnership. The partnership purchased the land five years ago for $20,000. At the time of the distribution, it is worth $28,000. Prior to the distribution, Atiqa's basis in her partnership interest is $37,000. Atiqa's basis in the distributed land and her post-distribution basis in her partnership interest are:

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Definitions:

Job Tenure

The length of time an individual remains employed in a particular job or with a single employer, often associated with job satisfaction and career progression.

Satisfaction

The feeling of fulfillment or pleasure arising from the attainment of one's goals or desires.

Celerity

Speed with which an individual initiates interaction with his or her environment

Interaction

The reciprocal action or influence between entities, such as people, objects, or concepts, within a particular context.