Partner R Received a Current Distribution from the RST Partnership

question 38

Multiple Choice

Partner R received a current distribution from the RST Partnership consisting of $20,000 cash, $6,000 of partnership zero basis accounts receivables, and a capital asset (FMV $7,000 and basis $1,500) .The distribution did not change R's profit and loss sharing ratio.Immediately prior to the distribution, R's outside basis in his partnership interest was $25,000.After the distribution, what basis does R have in the receivables, the capital asset, and his partnership interest?

• A)Receivables $0, capital asset $1,500, and interest $3,500
• B)Receivables $0, capital asset $5,000, and interest $0
• C)Receivables $2,500, capital asset $2,500, and interest $0
• D)Receivables $6,000, capital asset $7,000, and interest $12,000
• E)Receivables $0, capital asset $1,500, and interest $23,500

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