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Quincy Received a Liquidating Distribution of $5,000 Cash and Inventory

Question 60

Essay

Quincy received a liquidating distribution of $5,000 cash and inventory valued at $10,000 with a basis of $6,000 for his partnership interest with a basis of $20,000. What is Quincy's basis in the inventory? Does Quincy recognize any gain or loss on this distribution?

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Basis in inventory = $6,000. (...

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