# 20000 0 0 0 30000 10000 17000 10000 4 klois receives

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(4) Klois receives \$50,000 cash and inventory (basis of \$30,000, fair market value of \$50,000) inpartial liquidation of her partnership interest. Her basis was \$90,000 before the distribution. Allpartners received proportionate distributions.Problem 11-29 (Algorithmic) (LO. 2, 3)At the beginning of the tax year, Melodie's basis in the MIP LLC was \$64,000, including her \$41,600share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of \$9,600 andinventory (basis of \$7,680, fair market value of \$9,600). In addition, MIP repaid all of its liabilities bythe end of the year.a.If this is a proportionate current distribution, what is the tax effect of the distribution to Melodie andMIP? After the distribution, what is Melodie's basis in the inventory and in her MIP interest?After the distribution of inventory, what is Melodie's basis in the inventory and in her MIP interest?Basis in inventory\$Basis in MIP\$b.Would your answers to part (a) change if this had been a proportionate liquidating distribution?of
Exercise 11-18 (Algorithmic) (LO. 6)The Whitewater LLP is equally owned by three partners and shows the following balance sheet at theend of the current tax year.BasisFMVCash\$99,000\$99,000Unrealized receivables033,000Land33,000132,000\$132,000\$264,000Petula, capital\$44,000\$88,000Prudence, capital44,00088,000Primrose, capital44,00088,000\$132,000\$264,000Partner Petula is an active (i.e., "general") partner retiring from the service-oriented partnership. Shereceives \$99,000 cash, none of which is stated to be for goodwill.a.How much of the payment is for "unstated goodwill?"
b.How is the \$99,000 allocated between a § 736(a) income payment and a § 736(b) propertypayment?
Exercise 11-14 (Algorithmic) (LO. 3)When Magdalena's outside basis is \$232,500, she receives a liquidating distribution of \$58,125 cashand a proportionate share of inventory having a partnership basis of \$81,375 and a fair market valueof \$93,000. The distribution results in a liquidation of both the partnership and her interest.a.How much is Magdalena's basis in the inventory received?
b.What is the amount of any gain or loss recognized on the liquidation?
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