Eicho's Interest in the DPQ Partnership Is Terminated When Her

question 74

Essay

Eicho's interest in the DPQ Partnership is terminated when her basis in the partnership is $70,000. She receives a liquidating distribution of $20,000 cash and inventory with a $24,000 basis and a $40,000 FMV. What is her gain or loss, and what is her basis in the inventory received?

---

Definitions:

Atman

The transpersonal, supreme self, which is the same in everyone. Also see jiva.

Vedas

Ancient sacred scriptures of Hinduism, composed in early Sanskrit and containing hymns, philosophy, and guidance on religious practice.

Anatman

Buddhist doctrine that there is no separate self.

Eternal Atman

The concept in Hindu philosophy of the true self, or soul, which is eternal and transcends the physical body and personal identity.