Adnan Had an Adjusted Basis of $11,000 for His Interest

question 95

Essay

Adnan had an adjusted basis of $11,000 for his interest in the Adnan and Donnell Partnership on December 31. On this date, Adnan received from the partnership, in complete liquidation of his interest, $10,000 cash and land with a $2,000 basis to the partnership and a $3,000 FMV. What is Adnan's basis for the land distributed to him?

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Definitions:

Significant Figures

The number of digits in a value, counting from the first non-zero number, that are used to express the precision of measurements and calculations.

Significant Figures

The numbers of meaningful digits used to express a value accurately, reflecting its precision.

Significant Figures

The numbers of digits in a value that contribute to the precision of that value, reflecting the accuracy of scientific and mathematical measurements.