Lori, a Partner in the JKL Partnership, Received a Proportionate

question 195

True/False

Lori, a partner in the JKL partnership, received a proportionate current (nonliquidating) distribution of $10,000 cash, unrealized receivables with a basis of $0 and a fair market value of $15,000, and land with a basis of $6,000 and a fair market value of $10,000. Her basis in the partnership interest immediately before the distributions was $14,000. She will recognize $0 gain on the distribution, and her basis in the receivables and land will be $0 and $4,000, respectively.

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Definitions:

Levator Palpebrae Superioris

The muscle responsible for elevating the upper eyelid, crucial for opening the eye.

Auricular

Pertaining to the ear or hearing; sometimes also referring to structures resembling an ear or earlobe.

Mentalis Muscles

A pair of muscles at the tip of the chin, responsible for protruding the lower lip, contributing to facial expressions like pouting.

Dimple

A small, natural indentation in the skin, often located on the cheek or chin, usually considered a trait of attractiveness.