Tenika Has a $10,000 Basis in Her Interest in the TF

question 73

Multiple Choice

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to the partnership and an FMV of $3,375, and drip irrigation pipe held as inventory with a $6,000 basis to the partnership and an FMV of $5,000. What is the basis in Tenika's hands of the distributed property?

• A)$10,000
• B)$6,000
• C)$9,000
• D)$10,125

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Definitions:

Price

The amount of money required to purchase goods or services, serving as a reflection of value, costs, and market demand.

Dual Distribution

Dual distribution refers to a marketing strategy where a firm reaches its customers through two or more different types of distribution channels.

Merchandise

Products or goods that are bought, sold, or traded, often within the retail industry, to satisfy consumer needs and wants.

Channels

The pathways or routes through which goods and services flow from the producer to the consumer, including physical distribution and marketing channels.