Nadine Fimple Is a One-Third Partner in the NWL Partnership

question 17

Essay

Nadine Fimple is a one-third partner in the NWL Partnership with equal inside and outside bases.On January 1, NWL distributes $100,000 to Nadine in complete liquidation of her FPL interest.NWL's balance sheet as of January 1 is as follows:
$\begin{array}{llll} \text { } & \text {Basis } & \text {FMV } \\ \text { Inventory } &\$120,000&\$120,000\\ \text {Land } &\underline{60,000}&\underline{180,000}\\ \text { Total } &\underline{\$180,000}&\underline{\$300,000}\\\end{array}$



$\begin{array}{llcc} \text { Nadine, capital} & \$60,000 \\ \text { Wendell, capital } &60,000\\ \text { Lousis, capital} &\underline{60,000}\\ \text { Total } &\underline{\$180,000}\\\end{array}$
What is the amount and character of Nadine's recognized gain or loss on the distribution?

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Definitions:

Digestion

The process by which food is broken down in the gut into substances that can be absorbed and assimilated into the body.

Immune-System Responses

The reactions of the immune system to foreign substances, infections, or injuries to protect the body.

Energy Expenditure

The amount of energy, measured in calories, that a person uses to maintain bodily functions and perform physical activities.

Biological Damage

Physical harm or deterioration to biological organisms or systems.