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Zach's Partnership Interest Basis Is $100,000

question 7

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Zach's partnership interest basis is $100,000. Zach receives a proportionate, liquidating distribution from a liquidating partnership of $50,000 cash and inventory having a basis of $20,000 to the partnership and a fair market value of
$30,000. Zach assigns a basis of $20,000 to the inventory and recognizes a $30,000 loss.


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