Barbara Receives a Current Distribution Consisting of $2,000 Cash Plus

question 6

Multiple Choice

Barbara receives a current distribution consisting of $2,000 cash plus other property with an adjusted basis to the partnership of $2,300 and a fair market value on the date of the distribution of $7,000.Barbara has a 10 percent interest in the partnership and her basis in her partnership interest, immediately prior to the distribution, is $5,000.What is Barbara's basis in the noncash property received in the current distribution?

• A)$2,000
• B)$2,300
• C)$3,000
• D)$7,000
• E)None of the above