Before Receiving a Liquidating Distribution, Kathy's Basis in Her Interest

question 96

Multiple Choice

Before receiving a liquidating distribution, Kathy's basis in her interest in the KLM Partnership is $30,000. The distribution consists of $5,000 in money, inventory having a $1,000 basis to the partnership and a $2,000 FMV, and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000, respectively. What is Kathy's basis in each parcel of land?

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Definitions:

Intentionally Persuasive

Deliberately designed or used to influence someone's beliefs or actions.

We-Viewpoint

A perspective in communication focused on inclusion and collective interest, emphasizing "we" instead of "I" or "you."

Attention-Gaining Opening

The beginning of a speech or presentation designed to captivate the audience's interest immediately.

Central Selling Point

A unique feature or benefit that makes a product or service stand out from its competitors.