Daniel's Basis in the DAT Partnership Is $139,000

question 83

Essay

Daniel's basis in the DAT Partnership is $139,000. DAT distributes its land to Daniel in complete liquidation of his partnership interest. DAT reports the following balance sheet just before the distribution:
If DAT has a §754 election in place, what is the amount and sign (positive or negative)of the special basis adjustment resulting from the distribution to Daniel? What is DAT's basis in its remaining assets?

---

Definitions:

Retaining Customers

Strategies and activities that a business uses to prevent customer defection and to maintain long-lasting relationships with them.

Acquiring New Customers

The process of gaining new consumers or clients for a business's products or services, often involving marketing and sales strategies.

Recency-Frequency-Monetary Analysis

A marketing analysis tool that categorizes customers based on their recent purchases, how often they purchase, and how much they spend.

Costs Of Doing Business

The expenses involved in the day-to-day operations of a company, including rent, utilities, payroll, and materials.