Mark Receives a Nonliquidating Distribution of $10,000 Cash and a Parcel

question 137

Essay

Mark receives a nonliquidating distribution of $10,000 cash and a parcel of land having an adjusted basis of $18, fair market value of $25,000.
a. Mark's basis in his partnership interest prior to the distribution is $50,000.
(1) How much income will the partnership recognize due to the distribution?
(2) How much income will Mark recognize due to the distribution?
(3) What is Mark's basis in his partnership interest after the distribution?
(4) What is Mark's basis in the land?
b. Assume Mark's basis in his partnership interest is instead $22,000 and redetermine the responses to question through (4).

---

Definitions:

Field Experiment

An experimental research study conducted in a natural, real-world setting outside the laboratory.

Intergroup Prejudice

Negative beliefs, feelings, or attitudes one holds about a group different from their own, often leading to discrimination.

Interracial Marriage

A marriage between partners who belong to different racial groups, challenging social norms and often leading to increased understanding of diversity.

Implicit Association Test

A psychological assessment tool designed to uncover unconscious or hidden biases and attitudes by measuring the strength of associations between concepts.