Anthony's Basis in the WAM Partnership Interest Was $200,000 Just

question 9

Multiple Choice

Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000) , and inventory (basis of $30,000, fair market value of $70,000) . After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

• A) $80,000 loss; $90,000 (land); $30,000 (inventory).
• B) $70,000 loss; $100,000 (land); $30,000 (inventory).
• C) $30,000 loss; $100,000 (land); $70,000 (inventory).
• D) $30,000 loss; $90,000 (land); $30,000 (inventory).
• E) $0 gain or loss; $170,000 (land); $30,000 (inventory).