Dan Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 152

Multiple Choice

Dan receives a proportionate nonliquidating distribution when the basis of his partnership interest is $30,000.The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500.Dan's basis in the noncash property is:

• A)$26,500.
• B)$24,000.
• C)$20,000.
• D)$10,000.
• E)None of the above.