Daniel's basis in the DAT Partnership is $135,000. DAT distributes its land to Daniel in complete liquidation of his partnership interest. DAT reports the following balance sheet just before the distribution:
If DAT has a §754 election in place, what is the amount and sign (positive or negative) of the special basis adjustment resulting from the distribution to Daniel? What is DAT's basis in its remaining assets?
Definitions:
Agricultural Fertility
The capacity of land to produce abundant crop yields, often influenced by soil quality, climate, water availability, and agricultural practices.
Lightning
A natural electrical discharge of very short duration and high voltage between a cloud and the ground or within a cloud.
Mexica
Indigenous people of the Valley of Mexico, best known as the ruling ethnic group of the Aztec Empire, renowned for their complex society, architecture, and contributions to agriculture.
Aztecs
A Mesoamerican culture that flourished in central Mexico in the 14th to 16th centuries, known for their complex social structure, achievements in art and architecture, and conquered by the Spanish in 1521.
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