In a Proportionate Liquidating Distribution, RST Partnership Distributes to Partner

question 50

True/False

In a proportionate liquidating distribution, RST Partnership distributes to partner Riley cash of $30,000, accounts receivable (basis of $0 and fair market value of $40,000), and land (basis of $65,000 and fair market value of $50,000). Riley's basis was $40,000 before the distribution. On the liquidation, Riley recognizes a gain of $0, and her basis is $10,000 in the land and $0 in the accounts receivable.

---

Definitions:

Sample Statistic

A numerical measurement describing some aspect of a sample taken from a population.

Gross Revenue

The total amount of revenue generated by a business before deductions for expenses are made.

Hypotheses Tests

A statistical method that is used to decide whether the data at hand sufficiently supports a particular premise or hypothesis.

Linearly Related

A relationship between two variables where a change in one variable is associated with a proportional change in the other.