Mark Receives a Proportionate Nonliquidating Distribution

question 92

Multiple Choice

Mark receives a proportionate nonliquidating distribution.At the beginning of the partnership year,the basis of his partnership interest is $100,000.During the year,he received a cash distribution of $40,000 and a property distribution (basis of $30,000,fair market value of $25,000) .In addition,Mark's share of partnership liabilities was reduced by $10,000 during the year.How much gain or loss does Mark recognize;what is his basis in the property he received;and what is his remaining basis in the partnership interest?

• A)$25,000 loss;$25,000 basis in property;$0 remaining basis.
• B)$30,000 loss;$30,000 basis in property;$0 remaining basis.
• C)$0 gain or loss;$25,000 basis in property;$25,000 remaining basis.
• D)$0 gain or loss;$30,000 basis in property;$20,000 remaining basis.
• E)$0 gain or loss;$20,000 basis in property;$30,000 remaining basis.

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