Partner Michael received a distribution of $80,000 cash from the ABC Partnership in complete liquidation of his partnership interest. If Michael's outside basis immediately before the distribution was $200,000, Michael's recognized gain or recognized loss is: $-0- recognized gain and $-0- recognized loss. $120,000 recognized gain. $120,000 recognized loss. $80,000 recognized gain.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Partner Michael received a distribution of $80,000
cash from the ABC Partnership in complete
liquidation of his partnership interest. If Michael's
outside basis immediately before the distribution
was $200,000, Michael's recognized gain or
recognized loss is:
$-0- recognized gain and
$-0- recognized loss.
$120,000 recognized
gain.
$120,000 recognized loss.
$80,000 recognized gain.
Transcribed Image Text:Partner Michael received a distribution of $80,000 cash from the ABC Partnership in complete liquidation of his partnership interest. If Michael's outside basis immediately before the distribution was $200,000, Michael's recognized gain or recognized loss is: $-0- recognized gain and $-0- recognized loss. $120,000 recognized gain. $120,000 recognized loss. $80,000 recognized gain.
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