In a Proportionate Liquidating Distribution, RST Partnership Distributes to Partner

question 137

True/False

In a proportionate liquidating distribution, RST Partnership distributes to partner Riley cash of $30,000, accounts receivable (basis of $0, fair market value of $40,000), and land (basis of $65,000, fair market value of $50,000). Riley's basis was $40,000 before the distribution. On the liquidation, Riley recognizes a gain of $0, and her basis is
$10,000 in the land and $0 in the accounts receivable.

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Definitions:

Embezzlement

The act of withholding assets for the purpose of conversion of such assets, by one or more individuals to whom the assets were entrusted, either to be held or to be used for specific purposes.

Larceny

The unlawful taking and carrying away of someone else's personal property with the intent to deprive the rightful owner of it permanently.

Embezzlement

The act of dishonestly withholding or stealing funds that have been entrusted to one's care.

Bank Fraud

The use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.