DeWar's basis in the DW Partnership is $116,000. In aproportionate liquidating distribution, DeWar receives the assets: Tax Basis FMV Cash $16,000 $16,000 Plot- New Albany 40,000 90,000 Plot- Gahanna 40,000 50,000 A. How much gain or loss will DeWar recognize on the distribution? What is the character of any recognized gain or loss? B. What is DeWar's basis in the distributed assets?
DeWar's basis in the DW Partnership is $116,000. In aproportionate liquidating distribution, DeWar receives the assets: Tax Basis FMV Cash $16,000 $16,000 Plot- New Albany 40,000 90,000 Plot- Gahanna 40,000 50,000 A. How much gain or loss will DeWar recognize on the distribution? What is the character of any recognized gain or loss? B. What is DeWar's basis in the distributed assets?
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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DeWar's basis in the DW
| Tax Basis | FMV | |
| Cash | $16,000 | $16,000 |
| Plot- New Albany | 40,000 | 90,000 |
| Plot- Gahanna | 40,000 | 50,000 |
A. How much gain or loss will DeWar recognize on the distribution? What is the character of any recognized gain or loss?
B. What is DeWar's basis in the distributed assets?
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