Doris Owns a 1/3 Capital and Profits Interest in the Calendar-Year

question 17

Essay

Doris owns a 1/3 capital and profits interest in the calendar-year DB Partnership.Her adjusted basis for her partnership interest on July 1 of the current year is $20,000.On that date,she receives an operating distribution of her share of partnership assets shown below:
$\begin{array}{rrr}&\text { Partnership's }&\text { Asset's Fair }\\&\text { Basis in Asset}&\text { Market Value }\\\text {Cash}&81,000& \$ 81,000 \\\text {Inventory}&36,000& 24,000 \\\text {Land}&120,000& 135,000\end{array}$

What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?

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Definitions:

Neural Signal

The electrical or chemical transmission of information through neurons in the nervous system, facilitating communication between the brain and the body.

Physical Stimulus

An event or object in the environment that influences an individual's sensory and physiological response.

Motoric Function

Pertaining to movement; related to the physical actions and skills of the body.

Kinesthesis

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.