Megan's Basis Was $120,000 in the MYP Partnership Interest Just

question 174

Multiple Choice

Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000) . After the distribution, Megan's bases in the land and inventory are, respectively:

• A) $100,000 (land) and $20,000 (inventory).
• B) $120,000 (land) and $0 (inventory).
• C) $50,000 (land) and $70,000 (inventory).
• D) $40,000 (land) and $80,000 (inventory).
• E) $130,000 (land) and $70,000 (inventory).

---

Definitions:

Neoprene Wetsuit

A type of insulating garment made from neoprene and used in water sports for thermal protection.

Body Glove

A brand specializing in watersports apparel and gear, including wetsuits, swimwear, and water accessories for surfers and divers.

Marquee Brands

Highly recognizable and respected brands that are well-established and command a significant amount of consumer loyalty and trust.

Internationally

Relating to activities, operations, or influence that span across multiple countries around the world.