In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution: Office furnishing (fair market value of $100,000 and basis to partnership of $30,000) $40,000 of cash Inventory (fair market value of $100,000 and basis to partnership of $20,000) Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000
In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution: Office furnishing (fair market value of $100,000 and basis to partnership of $30,000) $40,000 of cash Inventory (fair market value of $100,000 and basis to partnership of $20,000) Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 25CE
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Partnership Distribution
In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution:
- Office furnishing (fair market value of $100,000 and basis to partnership of $30,000)
- $40,000 of cash
- Inventory (fair market value of $100,000 and basis to partnership of $20,000)
Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000
How much gain or loss will Spring Dupont recognize from this distribution?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT