The first 40000 of gain is allocated to acre and the

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The first $40,000 of gain is allocated to Acre, and the remaining gain of $60,000 is shared equally by the other two partners. The first $40,000 of gain is allocated to Acre, and the remaining gain of $60,000 is shared equally by all the partners in the partners Partnership Distributions Exercise 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? $0 $4,000 $7,000 $10,000 Exercise 2 In the current year, when Hoben's tax basis in Lynz Partnership interest was $10,000, Hoben received a liquidating distribution as follows: Adjusted tax basis Fair market value Marketable securities $ 5,000 $ 5,000 Land 25,000 27,000 Lynz had no appreciated inventory, unrealized receivables, or properties that had been contributed by its partners. What was Hoben's recognized gain on the distribution? $ 0 $15,000 $22,000 $23,000
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Exercise 3 The adjusted basis of Vance's partnership interest in Lex Associates was $180,000 immediately before receiving the following distribution in complete liquidation of Lex: Basis to Lex Fair market value Cash $100,000 $100,000 Real estate 70,000 96,000 What is Vance's basis in the real estate? $96,000 $83,000 $ 80,000 $70,000 Exercise 4 Stone's basis in Ace Partnership was $70,000 at the time he received a non-liquidating 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? $18,000 ordinary income. $13,000 capital gain. $5,000 capital loss. 0 Exercise 5 Stone and Frazier decided to terminate the Woodwest Partnership as of December 31. On that date, Woodwest's balance sheet was as follows: Cash $2,000 Equipment (adjusted basis) 2,000 Capital—Stone 3,000 Capital—Frazier 1,000 The fair market value of the equipment was $3,000. Frazier's outside basis in the partnership was $1,200. Upon liquidation, Frazier received $1,500 in cash. What gain should Frazier recognize? $0 $250 $300 Exercise 6
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As a general partner in Greenland Associates, an individual's share of partnership income for the current tax year is $25,000 ordinary business income and a $10,000 guaranteed payment. The individual also received $5,000 in cash distributions from the partnership. What income should the individual report from the interest in Greenland? $5,000 $25,000 $35,000 $40,000 Exercise 7 Hart's adjusted basis of his interest in a partnership was $30,000. He received a non-liquidating distribution of $24,000 cash plus a parcel of land with a fair market value and partnership basis of $9,000. Hart's basis for the land is $9,000 $6,000 $3,000 $0 Exercise 8 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? $0 $ 30,000 $35,000 $40,000 Exercise 9 The basis to a partner of property distributed "in kind" in complete liquidation of the partner's interest is the Adjusted basis of the partner's interest increased by any cash distributed to the partner in the same transaction.
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  • Spring '17
  • Wendy Achiles
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