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Kt has no liabilities at the date of the distribution tyson


Question - Tyson is a 25% partner in the KT partnership. On January 1, KT distributes $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000) and land with a fair value of $8,000 (inside basis of $12,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson basis in KT is $24,000. What is a Tyson's basis in the distributed inventory and land?

A. $8,000 inventory, $12,000 land

B. $16,000 inventory, $8,000 land

C. $ 0 inventory, $8,000 land

D $8,000 inventory,$0 land

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Accounting Basics: Kt has no liabilities at the date of the distribution tyson
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