Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,750 basis and a $17,050 fair market value. On January 2 of this year, Kimberly has a $15,900 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a Š12,975 basis and an $19,275 fair market value. Problem 21-44 Part b (Algo) b. What is Kimberly's remaining basis in KST after the distribution? Basis Problem 21-44 Part c (Algo) c. What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?
Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,750 basis and a $17,050 fair market value. On January 2 of this year, Kimberly has a $15,900 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a Š12,975 basis and an $19,275 fair market value. Problem 21-44 Part b (Algo) b. What is Kimberly's remaining basis in KST after the distribution? Basis Problem 21-44 Part c (Algo) c. What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Transcribed Image Text:Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a
$10,750 basis and a $17,050 fair market value. On January 2 of this year, Kimberly has a $15,900 basis in her partnership
interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating
distribution of a tract of land (not the contributed land) with a Š12,975 basis and an $19,275 fair market value.
Problem 21-44 Part b (Algo)
b. What is Kimberly's remaining basis in KST after the distribution?
Basis
Problem 21-44 Part c (Algo)
c. What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?
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