Geneva Receives a Proportionate Nonliquidating Distribution from the EFG Partnership

question 73

Multiple Choice

Geneva receives a proportionate nonliquidating distribution from the EFG Partnership.The distribution consists of $10,000 cash and property (adjusted basis to the partnership of $34,000 and fair market value of $42,000) .Immediately before the distribution,Geneva's adjusted basis in the partnership interest was $60,000.Her basis in the noncash property received is:

• A)$10,000.
• B)$34,000.
• C)$42,000.
• D)$50,000.
• E)$60,000.

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Definitions:

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