Wendy receives a proportionate nonliquidating distribution from the WXY Partnership.The distribution consists of $75,000 cash and property with an adjusted basis to the partnership of $20,000 and a fair market value of $25,000.Immediately before the distribution,Wendy's adjusted basis for her partnership interest is $90,000.Wendy's basis in the noncash property received is:
A)$0.
B)$15,000.
C)$20,000.
D)$25,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The Answer of Wendy receives a proportionate nonliquidating distribution from the WXY Partnership.The distribution consists of $75,000 cash and property with an adjusted basis to the partnership of $20,000 and a fair market value of $25,000.Immediately before the distribution,Wendy's adjusted basis for her partnership interest is $90,000.Wendy's basis in the noncash property received is:
A)$0.
B)$15,000.
C)$20,000.
D)$25,000.
E)None of the above.

Wendy Receives a Proportionate Nonliquidating Distribution from the WXY Partnership