Randi Owns a 40% Interest in the Capital and Profits

question 58

True/False

Randi owns a 40% interest in the capital and profits of the RAY Partnership.Immediately before she receives a proportionate nonliquidating distribution from RAY, the basis for her partnership interest is $60,000.The distribution consists of $45,000 in cash and land with a fair market value of $72,000.RAY's adjusted basis in the land immediately before the distribution is $36,000.As a result of the distribution, Randi recognizes a gain of $21,000.

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Definitions:

Small

Of a size that is less than normal or usual; the term is relative and can be used in various contexts to denote physical size.

Auto-

A prefix meaning self or same, used in terms that denote self-action, such as autoimmunity.

Self

The total, essential, or particular being of a person; the individual.

Mono-

A prefix meaning one, single, or alone; used in various scientific and medical terms.