In a Proportionate Liquidating Distribution, UVW Partnership Distributes to Partner

question 126

True/False

In a proportionate liquidating distribution, UVW Partnership distributes to partner William cash of $25,000, accounts receivable (basis of $10,000, fair market value of $8,000), and land (basis of $50,000, fair market value of $60,000).William's basis was $75,000 before the distribution.On the liquidation, William recognizes no gain or loss, and he takes a basis of $10,000 in the accounts receivable, and $50,000 in the land.

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Definitions:

Falling Asleep

The process by which a person transitions from wakefulness to sleep.

REM Sleep

A sleep stage characterized by rapid eye movement, dreaming, and increased brain activity.

NREM Sleep

Non-Rapid Eye Movement sleep, a restorative sleep phase characterized by reduced physiological activity and is divided into stages reflecting depth of sleep.

REM Sleep

A stage of sleep characterized by rapid eye movements, more brain activity, and vivid dreams.