Maggie,a Partner in the Magpie Partnership,received a Proportionate Nonliquidating Distribution

question 115

True/False

Maggie,a partner in the Magpie partnership,received a proportionate nonliquidating distribution of $20,000 cash,unrealized receivables with a basis of $0 and a fair market value of $30,000,and land with a basis of $25,000 and a fair market value of $20,000.Her basis in the partnership interest immediately before the distributions was $30,000.She will recognize $0 gain on the distribution,and her basis in the receivables and land will be $0 and $20,000 respectively.

---

Definitions:

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.

Research Design

The overall strategy that outlines the approach for collecting, analyzing, and interpreting data in a research study.

Variables

Elements or factors within a research study or experiment that can change and potentially affect the outcome of the study.

Test The Hypothesis

A process in scientific research where an assumption is investigated through controlled experiments or observations to determine its validity.