Match the following independent distribution payments in liquidation of a partner's interest in an ongoing partnership with the statements below.
-Distribution of cash of $60,000 for a partner's share of unrealized receivables where the partner is a general partner, and most of the partnership's income is derived from services.
A)A payment for the partner's share of partnership income under § 736(a).
B)A payment for the partner's share of partnership property under § 736(b).
C)The payment includes both a § 736(a) and a § 736(b) element.

Question

Quizplus · Accepted Answer

The payment is for the partner's share of partnership income under § 736(a) because it relates to unrealized receivables, which are considered income items rather than partnership property.

Match the Following Independent Distribution Payments in Liquidation of a Partner's