Nadine Fimple Is a One-Half Partner in the NL Partnership

question 52

Short Answer

Nadine Fimple is a one-half partner in the NL Partnership with equal inside and outside bases. On January 1, NL distributes accounts receivable with a fair value of $100,000 to Nadine as an operating distribution. NL's balance sheet as of January 1 is as follows: $$\begin{array}{l}\text { Liablities and capital: }\\\begin{array} { | c | r | } \hline \text { Capitar-Tatia } & \$ 33,000 \\\hline \text {-Rihanna } & 33,000 \\\hline \text {-Quinn } & 33,000 \\\hline \text { Total } & \$ 99,000 \\\hline\end{array}\end{array}$$ $$\begin{array} { | l | r | r | } \hline \text { Assets: } & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 110,000 & \$ 110,000 \\\hline \text { Stock (imvestment) } & 240,000 & 110,000 \\\hline \text { Land } & 55,000 & 110,000 \\\hline \text { Total } & \$ 405,000 & \$ 330,000 \\\hline\end{array}$$ What is the amount and character of Nadine's recognized gain or loss on the distribution?

---

Definitions:

Hospitalitis

A condition sometimes experienced by patients in hospitals, characterized by feelings of depression or helplessness due to a prolonged stay.

Social Skills

Abilities that facilitate interaction and communication with others in a socially effective and appropriate manner.

Medical Model

A framework for understanding diseases and disorders primarily in terms of biological factors and physical processes.

Antipsychotic Drugs

Medications prescribed to treat psychotic disorders by altering brain chemistry to reduce symptoms like hallucinations or delusions.