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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