Andy has an outside basis in Canine Partnership of $520,000.  The partnership distributes the following assets to Andy in a proportionate, non-liquidating distribution:   Land (fair market value of $6000,000 and basis to partnership of $240,000 Cash of $100,000 Accounts receivable (fair market value of $200,000 and basis of $0) How much gain of loss will Canine Partnership recognize from this distribution?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Andy has an outside basis in Canine Partnership of $520,000.  The partnership distributes the following assets to Andy in a proportionate, non-liquidating distribution:

 

  • Land (fair market value of $6000,000 and basis to partnership of $240,000

  • Cash of $100,000
  • Accounts receivable (fair market value of $200,000 and basis of $0)

How much gain of loss will Canine Partnership recognize from this distribution?

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