Tatia's basis in her TRQ Partnership interest is $33,000. Tatia receives a distribution of $22,000 cash from TRQ in complete liquidation of her interest. The three partners in TRQ share profits, losses, and capital equally. TRQ has the following balance sheet:
a. What is the amount and character of Tatia's recognized gain or loss? What is the effect on the partnership assets?
b. If TRQ has a §754 election in place, what is the amount and sign (positive or negative)of the special basis adjustment?
Definitions:
Patient-Visits
Refers to the total number of individual patient encounters with healthcare professionals, usually measured in a clinic or hospital setting.
Total Fixed Cost
The sum of all fixed expenses that a company incurs, which do not vary with production volume.
Planning Budget
A budget designed for a particular level of activity, often used for evaluating potential income and expenditures for future accounting periods.
Direct Labor
The labor costs of employees who are directly involved in the production of goods or services.
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