The Dominguez Partnership has the following assets on December 31: Antonio is a 20 percent partner and has a $7,000 basis in his partnership interest. The partnership has no liabilities. Antonio receives a liquidating distribution of $10,000 cash. What is the amount and character of the gain or income Antonio recognizes on this liquidating distribution?
A) 0
B) $1,000
C) $2,000
D) $3,000

Question

The Dominguez Partnership has the following assets on December 31:  Antonio is a 20 percent partner and has a $7,000 basis in his partnership interest. The partnership has no liabilities. Antonio receives a liquidating distribution of $10,000 cash. What is the amount and character of the gain or income Antonio recognizes on this liquidating distribution?
A) 0 
B) $1,000 
C) $2,000 
D) $3,000

Quizplus · Accepted Answer

The Answer of The Dominguez Partnership has the following assets on December 31:  Antonio is a 20 percent partner and has a $7,000 basis in his partnership interest. The partnership has no liabilities. Antonio receives a liquidating distribution of $10,000 cash. What is the amount and character of the gain or income Antonio recognizes on this liquidating distribution?
A) 0 
B) $1,000 
C) $2,000 
D) $3,000

The Dominguez Partnership Has the Following Assets on December 31