Anthonys basis in the wam partnership interest was

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Income Tax Fundamentals 2019
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Chapter 10 / Exercise 12
Income Tax Fundamentals 2019
Whittenburg/Gill
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55. Anthony’s basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000), and inventory (basis of $30,000, fair market value of $70,000). After the distribution, Anthony’s recognized gain or loss and his basis in the land and inventory are: A. $80,000 loss; $90,000 (land); $30,000 (inventory).B. $70,000 loss; $100,000 (land); $30,000 (inventory).C. $30,000 loss; $100,000 (land); $70,000 (inventory).D. $0 gain or loss; $170,000 (land); $30,000 (inventory).E. None of the above.
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Income Tax Fundamentals 2019
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Chapter 10 / Exercise 12
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
56. Beth has an outside basis of $100,000 in the BTDE Partnership as of December 31 of the current year. On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively. None of the distribution is for partnership goodwill. How much gain or loss will Beth recognize onthe distribution, and what basis will she take in the desk?
57. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution. His basis in his partnership interest was $120,000 prior to the distribution.How much gain or loss does Landis recognize and what is his basis in the asset received?
58. Jonathon owns a one-third interest in a liquidating partnership. Immediately before the liquidation, Jonathon’s basis in the partnership interest is $60,000. The partnership distributes cash of $32,000 and two parcels of land (each with a fair market value of $10,000). Parcel A has a basis of $2,000 to the partnership and Parcel B has a basis of $6,000. Jonathon’s basis in the two parcels of land is:
59. Michelle receives a proportionate liquidating distribution when the basis of her partnership interest is $50,000. The distribution consists of $58,000 cash and noninventory property (adjusted basis to the partnership of $10,000 and fair market value of $12,000). The partnership has no hot assets. How much gain or loss does Michelle recognize, and what is her basis in the distributed property? A. $0 gain or loss; $0 basis in property.B. $0 gain or loss; $50,000 basis in property.C. $8,000 ordinary income; $0 basis in property.D. $8,000 capital gain; $10,000 basis in property.E. $8,000 capital gain; $0 basis in property.

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