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

---

Definitions:

Operating Efficiency

A measure of how well a company uses its resources to produce goods or provide services.

Useful Life

The estimated duration of time a fixed asset is expected to be economically useful to the owner, used for depreciation calculations and planning.

Insurance During Transit

A policy that provides coverage for goods against loss or damage while they are being transported.

Acquisition Cost

The total cost incurred for acquiring an asset, including purchase price, installation charges, and other associated expenses.