Karli Owns a 25% Capital and Profits Interest in the Calendar-Year

question 145

Essay

Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership.Her adjusted basis for her partnership interest on July 1 of the current year is $200,000.On that date,she receives a proportionate nonliquidating distribution of the following assets: Partnership's Basis in Asset Asset's Fair Market Value Cash $120,000 $120,000 Inventory 50,000 60,000 Land (held for investment) 70,000 100,000 ​
a.Calculate Karli's recognized gain or loss on the distribution,if any.
b.Calculate Karli's basis in the inventory received.
c.Calculate Karli's basis in land received.The land is a capital asset.
d.Calculate Karli's basis for her partnership interest after the distribution.

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