Ted King's Basis for His Interest in the Troy Partnership

question 91

Multiple Choice

Ted King's basis for his interest in the Troy Partnership is $24,000. In complete liquidation of his interest, King receives cash of $4,000 and real property (not a Sec. 751 asset) having an FMV of $40,000. Troy's adjusted basis for this realty is $15,000. Section 736 does not apply. King's basis for this realty is

• A)$15,000.
• B)$20,000.
• C)$36,000.
• D)$40,000.

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