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

question 13

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: $$\begin{array} { | l | r | } \hline \text { Carmello, capital } & \$ 60,000 \\\hline \text { Doug, capital } & 60,000 \\\hline \text { Wenchy, capital } & 60,000 \\\hline \text { Total } & \$ 180,000 \\\hline\end{array}$$ $$\begin{array} { | l | r | r | } \hline \text { Assets: } & \text { Basis } & \text { FMV } \\\hline \text { Cash } & \$ 22,000 & \$ 22,000 \\\hline \text { Stock (imvestment) } & 11,000 & 22,000 \\\hline \text { Land } & \underline { 66,000 } & \underline { 22,000 } \\\hline \text { Total } & \$ 99,000 & \$ 66,000 \\\hline\end{array}$$ What is the amount and character of Nadine's recognized gain or loss on the distribution?

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Definitions:

Quality Commitment

A pledge or an obligation undertaken by a company to uphold high standards in its products or services.

Job Satisfaction

The level of fulfillment, contentment, and happiness that an individual experiences in their job.

High Level

Pertaining to activities or decisions that involve overarching goals, strategies, or priorities, often affecting an entire organization.

Behavioural Discontent

A state of dissatisfaction or unrest expressed through behavior, often as a response to perceived inequities or unmet expectations.