Before Receiving a Liquidating Distribution, Kathy's Basis in Her Interest

question 67

Multiple Choice

Before receiving a liquidating distribution, Kathy's basis in her interest in the KLM Partnership is $30,000.The distribution consists of $5,000 in money, inventory having a $1,000 basis to the partnership and a $2,000 FMV, and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000, respectively.What is Kathy's basis in each parcel of land?

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Definitions:

Depression

A common but serious mood disorder that affects how you feel, think, and handle daily activities, characterized by persistent feelings of sadness or loss of interest.

Dementia

A group of symptoms affecting memory, thinking, and social abilities severely enough to interfere with daily functioning.

Confusion

A state of being bewildered or unclear in one’s mind about something, often temporary, and can be caused by various medical or psychological conditions.

Suicide Risk

The likelihood that an individual will attempt to take their own life, often associated with mental health disorders such as depression.