Daniel's Basis in the DAT Partnership Is $131,500

question 42

Essay

Daniel's basis in the DAT Partnership is $131,500. 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?

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Definitions:

Normally Distributed

Describes a distribution that is symmetric around the mean, bell-shaped, and characterized by its mean and standard deviation.

Mean

The average value of a set of numbers, computed by dividing the sum of these numbers by the count of numbers in the set.

Median

The middle value in a list of numbers, which separates the higher half from the lower half of the dataset.

Normally Distributed

Describes a data set where most values cluster around a central mean value, forming a symmetric, bell-shaped distribution curve.