When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory having a partnership basis of $64,750 and a fair market value of $74,000. 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? She has a recognized of $ on the liquidation.

When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory having a partnership basis of $64,750 and a fair market value of $74,000. 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? She has a recognized of $ on the liquidation.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 14CE

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