Mark Receives a Proportionate Nonliquidating Distribution

question 92

Multiple Choice

Mark receives a proportionate nonliquidating distribution.At the beginning of the partnership year,the basis of his partnership interest is $100,000.During the year,he received a cash distribution of $40,000 and a property distribution (basis of $30,000,fair market value of $25,000) .In addition,Mark's share of partnership liabilities was reduced by $10,000 during the year.How much gain or loss does Mark recognize;what is his basis in the property he received;and what is his remaining basis in the partnership interest?

• A)$25,000 loss;$25,000 basis in property;$0 remaining basis.
• B)$30,000 loss;$30,000 basis in property;$0 remaining basis.
• C)$0 gain or loss;$25,000 basis in property;$25,000 remaining basis.
• D)$0 gain or loss;$30,000 basis in property;$20,000 remaining basis.
• E)$0 gain or loss;$20,000 basis in property;$30,000 remaining basis.

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Definitions:

Original Position

A theoretical situation in John Rawls' theory of justice where individuals select principles of justice behind a veil of ignorance, unaware of their personal characteristics.

Rawls

John Rawls, a prominent American philosopher known for his work in political philosophy, particularly the theory of justice as fairness.

Minkoff and Paltrow

Referring to individuals or authors who may have contributed to literature or research, but without specific context, it's challenging to provide a detailed definition.

Fetuses

The term for a developing human during pregnancy after the embryonic stage and until birth.