John Has a Basis in His Partnership Interest of $30,000

question 85

Multiple Choice

John has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000) , inventory (FMV $8,000, basis $4,000) , and investment land (FMV $7,000, basis $6,000) . The partners' relative interest in the Sec. 751 assets do not change as a result of the current distribution. His basis in the land is

• A)$5,000.
• B)$6,000.
• C)$7,000.
• D)$10,000.

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Definitions:

Correlate

To share a two-way relationship or bond, whereby one element impacts or relies on the other.

Extraversion

A personality trait characterized by an outgoing, energetic, and often sociable disposition, with a high tendency for external stimulation.

Shy

A temperament featuring nervousness or timidity in the presence of other people, often leading to avoidance of social situations.

Extraversion

A personality trait characterized by outgoingness, sociability, and a high level of activity.