a 30000 basis in inventory 40000 basis in land 98000 basis in partnership b

# A 30000 basis in inventory 40000 basis in land 98000

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partnership interest (including debt share) following the distribution?a. \$30,000 basis in inventory; \$40,000 basis in land, \$98,000 basis in partnership.b. \$30,000 basis in inventory; \$42,000 basis in land, \$110,000 basis in partnership.c. \$40,000 basis in inventory; \$40,000 basis in land, \$86,000 basis in partnership.d. \$40,000 basis in inventory; \$42,000 basis in land, \$98,000 basis in partnership.e. \$40,000 basis in inventory; \$42,000 basis in land, \$110,000 basis in partnership.7. Jack has a basis in a partnership interest of \$300,000, including his \$80,000 share of partnership debt. At the end of the current year, the partnership pays off its liabilities and makes a proportionate current (nonliquidating) distribution to its partners. Jack receives a parcel of land (partnership basis = \$120,000, value = \$135,000) and inventory (partnership basis = \$160,000, value = \$180,000). Following the distribution, what is Jack’s basis in the land, inventory, and the partnership interest?8. Alyce owns a 30% interest in a continuing partnership. The partnership distributes a \$35,000 year-end cash payment to Alyce. In a proportionate current (nonliquidating) distribution, the partnership also distributed property (basis of \$20,000, fair market value of \$30,000) to Alyce. Immediately before the distributions of cash and property, Alyce’s basis in the partnership interest was \$60,000. As a result of the distribution, Alyce recognizes:Page 2of 9
9. Xena and Xavier form the XX LLC. Xena contributes cash of \$20,000, land (basis = \$40,000; fair market value = \$25,000), equipment (basis = \$0; fair market value = \$35,000), and inventory (basis = \$30,000; fair market value = \$40,000). Xavier contributed \$100,000 of cash. How much is the partnership’s basis in the land, equipment, and inventory, and how much is Xena’s basis in the partnership interest?

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