In a Proportionate Liquidating Distribution in Which the Partnership Is

question 67

True/False

In a proportionate liquidating distribution in which the partnership is also liquidated, Macy received cash of $10,000 and inventory (basis of $18,000 and fair market value of $32,000). Immediately before the distribution, Macy's basis in the partnership interest was $40,000. Macy recognizes no gain or loss, and her basis in the inventory is $30,000.

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Definitions:

Cell Body

Also known as the soma, this is the central part of a neuron that contains the nucleus and is essential for processing and transmitting neural information; another term for neuron cell bodies.

Dorsal Roots

The sensory branches of spinal nerves that transmit sensory information from the peripheral nervous system to the spinal cord.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem down the back, transmitting nerve signals to and from the brain.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.