In a Proportionate Liquidating Distribution in Which the Partnership Is

question 158

Essay

In a proportionate liquidating distribution in which the partnership is liquidated,Marcus received cash of $60,000,inventory (basis of $10,000,fair market value of $12,000),and a capital asset (basis and fair market value of $22,000).Immediately before the distribution,Marcus's basis in the partnership interest was $100,000.
a.How much gain or loss will Marcus recognize on the distribution?
b.What is Marcus's basis in the inventory and the capital asset?

---

Definitions:

Plus Sign (+)

A mathematical symbol indicating addition or a positive value.

Add-On Codes

Codes used in medical billing to indicate additional procedures or services that are performed alongside a primary service.

HCPCS Level II Codes

Codes that cover many supplies such as sterile trays, drugs, and durable medical equipment; also referred to as national codes. They also cover services and procedures not included in the CPT.

National Codes

A set of standardized codes used within a country for classifications, such as for health care procedures, diseases, or national statistics.