C12-Chp-11-9-MC-Partnership-Distributions

C12-Chp-11-9-MC-Partnership-Distributions -...

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Unformatted text preview: 3610c5f0318edc92cd9ea4c845531491b64f1d39.doc Page 1 of 1 CPA Exam Questions on Partnership Distributions (Partnership interest not terminated) 1. Hart's adjusted basis in Best Partnership was $9,000 at the time he received the following non-liquidating distributions of partnership property: Cash $ 5,000 Land Adjusted basis 7,000 Fair market value 10,000 What was the amount of Hart's basis in the land? a. $0 b. $ 4,000 c. $ 7,000 d. $10,000 CPA Nov1995 2. Day's adjusted basis in LMN Partnership interest is $50,000. During the year Day received a nonliquidating distribution of $25,000 cash plus land with an adjusted basis of $15,000 to LMN, and a fair market value of $20,000. How much is Day's basis in the land? a. $10,000 b. $15,000 c. $20,000 d. $25,000 CPA May, 1994 Items 3 and 4 are based on the following: 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...
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