Nicky's basis in her partnership interest was $150,000, including her $40,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Nicky receives $30,000 cash and inventory with a $50,000 basis and a $58,000 fair market value to the partnership. What loss does Nicky recognize, and what is her basis in the inventory?
A) $70,000 loss; $50,000 basis.
B) $30,000 loss; $50,000 basis.
C) $22,000 loss; $58,000 basis.
D) $62,000 loss; $58,000 basis.
E) $0 loss; $80,000 basis.
Correct Answer:
Verified
Q141: Suzy owns a 30% interest in the
Q142: Which of the following statements is true
Q143: Catherine's basis was $50,000 in the CAR
Q144: Landis received $90,000 cash and a capital
Q145: Anthony's basis in the WAM Partnership interest
Q147: Jonathon owns a one-third interest in a
Q148: Misha receives a proportionate current (nonliquidating) distribution
Q149: Which of the following statements correctly reflects
Q150: In a proportionate liquidating distribution, Sam receives
Q151: In a proportionate liquidating distribution, Sara receives
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents