liquidation of her partnership interest. Item Fair Value Partnership's Basis Cash 30,000 30,000 Inventory 20,000 10,000 As a result of this distribution, she has --- no gain or loss, a $10,000 basis in inventory, and a $10,000 outside basis in her partnership interest a $10,000 ordinary gain, a $20,000 basis in inventory, and a $0 outside basis in her partnership interest a $10,000 ordinary gain, a $20,000 basis in inventory, and a $10,000 outside basis in her partnership interest
liquidation of her partnership interest. Item Fair Value Partnership's Basis Cash 30,000 30,000 Inventory 20,000 10,000 As a result of this distribution, she has --- no gain or loss, a $10,000 basis in inventory, and a $10,000 outside basis in her partnership interest a $10,000 ordinary gain, a $20,000 basis in inventory, and a $0 outside basis in her partnership interest a $10,000 ordinary gain, a $20,000 basis in inventory, and a $10,000 outside basis in her partnership interest
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 55P
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This answer is wrong . please give me the right answer.
Transcribed Image Text:Marla Davis has a $50,000 outside basis in her partnership interest. She receives the following items in partial
liquidation of her partnership interest.
Item Fair Value Partnership's Basis
Cash
30,000 30,000
Inventory 20,000
10,000
As a result of this distribution, she has
---
no gain or loss, a $10,000 basis in inventory, and a $10,000 outside basis in her partnership interest
a $10,000 ordinary gain, a $20,000 basis in inventory, and a $0 outside basis in her partnership interest
a $10,000 ordinary gain, a $20,000 basis in inventory, and a $10,000 outside basis in her partnership interest
none of the above
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT