Lori, a Partner in the JKL Partnership, Received a Proportionate

question 195

True/False

Lori, a partner in the JKL partnership, received a proportionate current (nonliquidating) distribution of $10,000 cash, unrealized receivables with a basis of $0 and a fair market value of $15,000, and land with a basis of $6,000 and a fair market value of $10,000. Her basis in the partnership interest immediately before the distributions was $14,000. She will recognize $0 gain on the distribution, and her basis in the receivables and land will be $0 and $4,000, respectively.

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Definitions:

Number 12

The whole number that follows 11 and precedes 13, part of the counting order in mathematics.

Exponent

A mathematical notation indicating the number of times a base is multiplied by itself, also known as "power" or "index".

Whole Number

A whole number that is not a fraction or decimal.

Whole Number

An integer value that is not fractional or decimal, positive, negative, or zero.