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?

---

Definitions:

Statistical Analysis

The process of collecting, exploring, and interpreting data to discover underlying patterns, trends, and relationships, using mathematical theories and formulas.

Free Association

A psychoanalytic method where the patient vocalizes their immediate thoughts and feelings without any form of censorship to reveal underlying unconscious processes.

Edward L. Thorndike

An American psychologist famous for his work on learning theory and the development of the law of effect.

Henry Murray

An American psychologist best known for his development of the Thematic Apperception Test (TAT) and his theory of personality based on needs.