Bob Received a Proportionate Current Nonliquidating) Distribution of Land from the BZ

question 73

True/False

Bob received a proportionate current nonliquidating) distribution of land from the BZ Partnership. The land had a
fair market value of $15,000 and a basis to the partnership of $10,000. The land was held for investment purposes by the partnership. Bob's basis in his partnership interest immediately before the distribution was $6,000. If the partnership has a § 754 election in effect, it will record a $4,000 step-down in the basis of remaining assets, and the step-down will be attributed to all partners in the partnership.

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Definitions:

Outward Manifestations

Refers to the actions or expressions by parties in a contract that show their intention to enter into the agreement.

Contract Law

The branch of law dealing with the formation, performance, and enforcement of agreements between parties.

Consideration

Something of value exchanged between parties in a contract, making the agreement legal and binding.

Bargained-For Exchange

An element of contracts where both parties agree to provide something of value to the other.