Basis of partnership interest problem


Becky has a $24,000 basis in her partnership interest. She receives a current distribution of $4,000 cash, unrealized receivables with a basis of $12,000 and a FMV of $16,000, and land held as an investment with a basis of $3,000 and a FMV of $8,000. The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. The basis of her partnership interest following the distribution is:

a.$5,000

b.$1,000

c.$0

d.($4,000)

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Basis of partnership interest problem
Reference No:- TGS055780

Expected delivery within 24 Hours