Jonathon Owns a One-Third Interest in a Liquidating Partnership

question 217

Multiple Choice

Jonathon owns a one-third interest in a liquidating partnership. Immediately before the liquidation, Jonathon's basis in the partnership interest is $60,000. The partnership distributes cash of $32,000 and two parcels of land (each with a fair market value of $10,000) . Parcel A has a basis of $2,000 to the partnership and Parcel B has a basis of $6,000. Jonathon's basis in the two parcels of land is:

• A) Parcel A, $2,000? Parcel B, $6,000.
• B) Parcel A, $7,000? Parcel B, $21,000.
• C) Parcel A, $10,000? Parcel B, $10,000.
• D) Parcel A, $14,000? Parcel B, $14,000.
• E) Parcel A, $15,000? Parcel B, $45,000.

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Definitions:

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Electronic messages sent over a computer network, used for communication purposes.

Cyber Connection

The linking of computers or devices via the internet, allowing for communication and data exchange.

Informal

Pertaining to interactions or structures not governed by formal rules, procedures, or policies, often based on personal or casual connections.

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A communication network that operates outside formal channels within an organization, often known as the "grapevine."