Frank Receives a Proportionate Nonliquidating Distribution from the AEF Partnership

question 11

Multiple Choice

Frank receives a proportionate nonliquidating distribution from the AEF Partnership. The distribution consists of $10,000 cash and property (adjusted basis to the partnership of $54,000 and fair market value of $60,000) . Immediately before the distribution, Frank's adjusted basis in the partnership interest was $50,000. His basis in the noncash property received is:

• A)$0.
• B)$40,000.
• C)$54,000.
• D)$60,000.
• E)None of the above.

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Definitions:

Premenstrual Syndrome

A group of symptoms that occur in women, typically between ovulation and a period.

Reproductive Condition

The state or health of an organism's reproductive systems and its ability to reproduce.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating actions and sensory information.

Reproductive Condition

A state or quality of an organism’s reproductive system, which can affect its ability to produce offspring.