In a Proportionate Liquidating Distribution in Which the Partnership Is

question 212

Essay

In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $6,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill's basis in the partnership interest was $90,000.

a. How much gain or loss will Bill recognize on the distribution?
b. What is Bill's basis in the inventory and the capital asset?

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Definitions:

Genetic Expressions

The process by which information from a gene is used in the synthesis of a functional gene product, like a protein.

Allelic Frequencies

The relative frequencies of different alleles of a particular gene within a population, which can change over time due to evolutionary pressures.

Genetic Expressions

The process by which information from a gene is used in the synthesis of a functional gene product, often leading to the manifestation of a particular trait.

Gene Pool

The total collection of different genes in an interbreeding population.