Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to the partnership and an FMV of $3,375, and drip irrigation pipe held as inventory with a $6,000 basis to the partnership and an FMV of $5,000.What is Tenika's basis for the plastic tubes and drip irrigation pipe?

Question

Quizplus · Accepted Answer

D)
 11ea83d0_ede6_232b_908c_3703f813b4d1_TB5378_00 *$3,000 ÷ ($3,000 + $5,000) × 2,000 = 750
**$5,000 ÷ ($3,000 + $5,000) × 2,000 = 1,250

Tenika Has a $10,000 Basis in Her Interest in the TF