Adnan Had an Adjusted Basis of $11,000 for His Interest

question 95

Essay

Adnan had an adjusted basis of $11,000 for his interest in the Adnan and Donnell Partnership on December 31. On this date, Adnan received from the partnership, in complete liquidation of his interest, $10,000 cash and land with a $2,000 basis to the partnership and a $3,000 FMV. What is Adnan's basis for the land distributed to him?

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Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or academic settings.

Zero-Tolerance Policy

A strict enforcement strategy that allows no exceptions to a rule, often applied in contexts such as workplace behavior or school discipline.

EEOC

The Equal Employment Opportunity Commission, a federal agency that administers and enforces civil rights laws against workplace discrimination.

Abusive Behavior

Actions that intentionally cause harm or distress to another individual, often manifesting in physical, emotional, or sexual abuse.