Nadine Fimple Is a One-Third Partner in the NWL Partnership

question 35

Short Answer

Nadine Fimple is a one-third partner in the NWL Partnership with equal inside and outside bases. On January 1, NWL distributes $100,000 to Nadine in complete liquidation of her FPL interest. NWL's balance sheet as of January 1 is as follows:
$$\begin{array} { | l | r | r | } \hline & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 120,000 & \$ 120,000 \\\hline \text { Inventory } & 60,000 & 180,000 \\\hline \text { Total } & \$ 180,000 & \$ 300,000 \\\hline\end{array}$$ What is the amount and character of Nadine's recognized gain or loss on the distribution?
$$\begin{array} { | l | r | } \hline \text { Nadine, capital } & \$ 60,000 \\\hline \text { Wendell, capital } & 60,000 \\\hline \text { Louis, capital } & 60,000 \\\hline \text { Total } & \$ 180,000 \\\hline\end{array}$$

---

Definitions:

Masturbatory Asphyxia

A dangerous sexual practice that involves intentionally restricting oxygen to the brain during masturbation to increase pleasure, which can lead to death.

Sexual Behaviors

Actions or practices related to the expression of sexuality, including sexual intercourse, masturbation, and others, varying widely among individuals.

Voyeurism

A disorder that involves deriving sexual pleasure from observing others when they are naked or engaged in sexual activity.

Seductively Undress

The act of removing one's clothes in a manner intended to arouse sexual desire in others.