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:

Well-designed Documents

Documents that are aesthetically pleasing and effectively arranged for easy understanding and navigation.

Intelligent

Having or showing the ability to easily learn or understand things or to deal with new or difficult situations.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in a workplace or other professional or social situation.

Slang

Informal language consisting of words and expressions that are not considered standard in the speaker's dialect or language.