View the step-by-step solution to:

Partnership CAT makes a liquidating proportionate distribution to T who has a one-half interest in the capital and profits of CAT. T's basis in her...

Partnership CAT makes a liquidating proportionate distribution to T who has a one-half interest in the capital and profits of CAT. T's basis in her partnership interest is $80,000. She receives land with a basis of $90,000 and fair market value of $100,000. How much gain or loss does M recognize and what is her basis in the land after the distribution?

Gain/Loss Basis

 

A. $ 0 $90,000

 

B. $ 0 $80,000

 

C. $10,000 $80,000

 

D. $20,000 $80,000

Top Answer

The way to approach this... View the full answer

1 comment
  • Gain will be recognized if the partner receive cash and inventory in excess of his interest in the partnership.
    • dinamarcanete
    • May 03, 2018 at 1:16am

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online