Carl Receives a Proportionate Nonliquidating Distribution When the Basis of His

question 77

Multiple Choice

Carl receives a proportionate nonliquidating distribution when the basis of his partnership interest is $60,000.The distribution consists of $20,000 in cash and property with an adjusted basis to the partnership of $35,000 and a fair market value of $40,000.Carl's basis in the noncash property and his remaining basis in the partnership interest are:

• A)$60,000;$0.
• B)$35,000;$0.
• C)$35,000;$5,000.
• D)$40,000;$5,000.
• E)None of the above.

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