Riley Is a 50% Partner in the RF Partnership and Has

question 6

Multiple Choice

Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributions. On December 31, Riley receives a proportionate operating distribution of $6,000 cash and a parcel of land with a $14,000 fair value and an $8,000 basis to RF. What is Riley's basis in the distributed property?

• A) Cash $6,000, land $0.
• B) Cash $6,000, land $8,000.
• C) Cash $6,000, land $14,000.
• D) Cash $6,000, land $22,000.

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