Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan's bases in the received assets are, respectively:
A) $100,000 (land) and $20,000 (inventory).
B) $120,000 (land) and $0 (inventory).
C) $50,000 (land) and $70,000 (inventory).
D) $40,000 (land) and $80,000 (inventory).
E) $130,000 (land) and $70,000 (inventory).

Question

Quizplus · Accepted Answer

The Answer of Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan's bases in the received assets are, respectively:
A) $100,000 (land) and $20,000 (inventory).
B) $120,000 (land) and $0 (inventory).
C) $50,000 (land) and $70,000 (inventory).
D) $40,000 (land) and $80,000 (inventory).
E) $130,000 (land) and $70,000 (inventory).

Megan's Basis Was $120,000 in the MYP Partnership Interest Just