On December 31, Kate Receives a $28,000 Liquidating Distribution from the KLM

question 62

Essay

On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On that date, Kate's basis in her limited partnership interest is $18,000 (which, of course, includes her share of partnership liabilities). The other partners assume her $6,000 share of liabilities. Just prior to the distribution, the partnership has the following balance sheet. Kate is leaving the partnership but the partnership is continuing.
$$\begin{array} { | l | r | c | } \hline { \text { Equities } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Notes payable } & \$ 30,000 & \$ 30,000 \\\text { Kate, capital } & 12,000 & 27,000 \\\text { Lynn, capital } & 24,000 & 54,000 \\\text { Mark, capital } & \underline { 24,000 } & \underline { 54,000 } \\\text { Total } & \underline { \$ 90,000 } & \$ 165,000 \\\hline\end{array}$$ What is the amount and character of the gain that Kate must recognize on the liquidating distribution?

Explain the role and procedures of a search warrant in criminal investigations.

Describe the rights of the accused from arrest through trial, including Miranda rights and the right to bail.

Understand the plea bargaining process and its implications for the criminal justice system.

Learn about pretrial motions and their purposes in a criminal case.

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