McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

تمرين 56

Rufus is a one-quarter partner in the Adventure partnership.On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest.Adventure has only capital assets and no liabilities at the date of the distribution.Rufus' basis in his partnership interest is $18,500.a.What is the amount and character of Rufus' recognized gain or loss?
b.What is the amount and character of Adventure's recognized gain or loss?
c.If Rufus' basis is $10,000 at the distribution date rather than $18,500, what is the amount and character of Rufus' recognized gain or loss?