The CHS Partnership's balance sheet presented below is prepared on a cash basis at September 30 of the current year.
Cindy withdraws from the partnership under an agreement whereby she takes one-third of each of the three assets and assumes $10,000 of the notes payable. Her basis for the partnership interest before any distribution is $25,000. What gain/loss should she report for tax purposes?

Question

The CHS Partnership's balance sheet presented below is prepared on a cash basis at September 30 of the current year.
   Cindy withdraws from the partnership under an agreement whereby she takes one-third of each of the three assets and assumes $10,000 of the notes payable. Her basis for the partnership interest before any distribution is $25,000. What gain/loss should she report for tax purposes?

Quizplus · Accepted Answer

The Answer of The CHS Partnership's balance sheet presented below is prepared on a cash basis at September 30 of the current year.
   Cindy withdraws from the partnership under an agreement whereby she takes one-third of each of the three assets and assumes $10,000 of the notes payable. Her basis for the partnership interest before any distribution is $25,000. What gain/loss should she report for tax purposes?

The CHS Partnership's Balance Sheet Presented Below Is Prepared on a Cash