Bradley Owns a One-Third Interest in a Liquidating Partnership

question 84

Multiple Choice

Bradley owns a one-third interest in a liquidating partnership.Immediately before the liquidation,Bradley's basis in the partnership interest is $30,000.The partnership distributes cash of $14,000 and two parcels of land (each with a fair market value of $5,000) .Parcel A has a basis of $1,000 to the partnership and Parcel B has a basis of $3,000.Bradley's basis in the two parcels of land is:

• A)Parcel A,$1,000;Parcel B,$3,000.
• B)Parcel A,$4,000;Parcel B,$12,000.
• C)Parcel A,$5,000;Parcel B,$5,000.
• D)Parcel A,$8,000;Parcel B,$8,000.
• E)Parcel A,$15,000;Parcel B,$15,000.

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