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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Prime Minister

Refers to the head of government in many countries, typically the leader of the majority party in the legislature, who oversees the administration of government policies.

George Grenville

A British Whig statesman who served as Prime Minister of Great Britain from 1763 to 1765, known for his role in passing the Stamp Act, which contributed to the American Revolution.

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Native Americans

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