In a Proportionate Liquidating Distribution, Alexandria Receives a Distribution of $70,000

question 13

Multiple Choice

In a proportionate liquidating distribution, Alexandria receives a distribution of $70,000 cash, accounts receivable (basis of $0, fair market value of $20,000) , and land (basis of $30,000, fair market value of $60,000) .In addition, the partnership repays all liabilities, of which Alexandria's share was $40,000.Alexandria's basis in the entity immediately before the distribution was $90,000.As a result of the distribution, what is Alexandria's basis in the accounts receivable and land, and how much gain or loss does she recognize?

• A)$0 basis in accounts receivable; $0 basis in land; $20,000 gain.
• B)$0 basis in accounts receivable; $30,000 basis in land; $0 gain or loss.
• C)$0 basis in accounts receivable; $0 basis in land; $0 gain or loss.
• D)$0 basis in accounts receivable; $30,000 basis in land; $0 gain.
• E)$20,000 basis in accounts receivable; $0 basis in land; $20,000 gain.

---

Definitions:

Emotion-focused Efforts

Coping strategies aimed at managing the emotional distress associated with stressful situations rather than changing the situation itself.

Problem-focused Efforts

Strategies and actions directed towards identifying, analyzing, and resolving a problem or challenge, rather than merely coping with its consequences.

Health Prevention

Strategies or measures taken to prevent the occurrence of disease and promote physical and mental health in individuals or communities.

Healthy Behaviors

Actions or practices by individuals that contribute to maintaining or improving their health.