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On November 30, Teri Received a Current Distribution of Cash

question 11

Essay

On November 30, Teri received a current distribution of cash of $4,000, marketable securities with a basis of $24,000 and an FMV of $30,000, and inventory with a basis of $2,000 and an FMV of $6,000. Prior to the distribution, Teri's basis in her interest in the partnership was $30,000. (There is no Sec. 751 exchange as a result of the distribution.)How much gain (if any)must Teri recognize as a result of the distribution?


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