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?

---

Definitions:

Approving Nods

Gestures made by moving the head up and down to express approval, agreement, or acknowledgment without using words.

Open Up

To become more accessible or available emotionally or physically, creating an environment for sharing information or entering.

Deficit Need

A requirement essential for a person's psychological development and growth, which, if unmet, can lead to feelings of inferiority or weakness.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.