Nadine Fimple Is a One-Half Partner in the NL Partnership

question 67

Essay

Nadine Fimple is a one-half partner in the NL Partnership with equal inside and outside bases.On January 1,NL distributes accounts receivable with a fair value of $100,000 to Nadine as an operating distribution.NL's balance sheet as of January 1 is as follows:
$\begin{array}{l}\begin{array}{lll}\\\text { Cash} \\\text { Account receivable} \\\text { Total} \\\\\text { Nadine, capital} \\\text { Louis, capital} \\\text { Total} \\\end{array}\begin{array}{lll}\text { Basis } & \text { FMV } \\\$ 100,000 & \$ 100,000 \\-0- &\$ 100,000 \\\underline{ \$ 100,000}& \underline { \$ 200,000} \\\\\$ \quad 50,000 \\\underline{ 50,000 }\\ \underline { \$ \quad 100,000}\end{array}\end{array}$
What is the amount and character of Nadine's recognized gain or loss on the distribution?

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Definitions:

Common Causes

Factors or circumstances that are frequently observed as reasons behind certain events, issues, or outcomes.

Intrinsic Variation

The natural variability inherent within a process or system.

Process Variation

The fluctuation or inconsistency in the procedures and outcomes of manufacturing or service delivery, impacting quality and performance.

Quality Function Deployment

A systematic approach to design based on a close awareness of customer desires, translating those desires into the target design.