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:

Nonfarm Sectors

Industries and activities not directly involved in agriculture, farming, or the raising of animals.

Demand

Describes the quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given moment.

Supply

The total quantity of a good or service that is available for purchase at any given price point.

Farm Products

Goods that are produced by agricultural activities; includes crops, livestock, and related commodities.