C12-Chp-11-2-Homework-Prb-Partnership-Dist-2012

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8520b6f83c0c8766e02f497da88b6fcde1487bbe.doc. Page 1 of 6 First Name Last Name: Home work-Chapter 11. Turn in one copy of your solutions at the start of class. (27 @ 4 Pts. = 108) Determine the amount and character of gain or loss a partner recognizes in a nonliquidating partnership distribution. 1 [Pg. 4, Sec. 731] The adjusted basis of Jody's partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000. What amount of taxable gain must Jody report as a result of this distribution? a. $0 b. $5,000 c. $10,000 d. $20,000 CPA 11-93 2 [Pg. 4, Sec. 731] Rebecca’s adjusted basis in a partnership interest was $10,000 before receiving these distributions: (1) Cash of $8,000 and (2) Land with an adjusted basis of $7,000 to the partnership and a FMV of $9,000. Assume this is a non-liquidating distribution for Rebecca. What Rebecca’s gain to be recognized as a result of these distributions? 3 [Pg. 4, Sec. 731] The adjusted basis of Mr. X's partnership interest in ABC partnership is $8,000. X received a non-liquidating distribution of $2,500 cash and property that had an adjusted basis to the partnership of $6,200 (fair market value - $7,000). X's recognized gain on this liquidation is: 4 [Pg. 4, Sec. 731] Stone's basis in Ace Partnership was $70,000 at the time he received a nonliquidating distribution of partnership capital assets. These capital assets had an adjusted basis of $65,000 to Ace, and a fair market value of $83,000. Ace had no unrealized receivables, appreciated inventory, or properties which had been contributed by its partners. What was Stone's recognized gain or loss on the distribution? Determine the partner’s basis of assets received in a nonliquidating partnership distribution. 5 [Pg. 6, Sec. 732] The adjusted basis of Jody's partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000. What is Jody's basis in the distributed property (other than cash)? a. $0 b. $30,000 c. $35,000 d. $40,000 CPA 11-93 6 [Pg. 6, Sec. 732] Rebecca’s adjusted basis in a partnership interest was $10,000 before receiving these distributions: (1) Cash of $8,000 and (2) Land with an adjusted basis of $7,000 to the partnership and a FMV of $9,000. Assume this is a non-liquidating distribution for Rebecca. What is her basis in the land? 7
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