Jenna Harvey has a $50,000 outside basis in her partnership interest and decides to terminate...
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Accounting
Jenna Harvey has a $50,000 outside basis in her partnership interest and decides to terminate her interest. She receives the following from the partnership: Item Fair Value Partnerships Basis Cash 30,000 30,000 Securities* 15,000 10,000 Inventory 10,000 5,000 * The securities are considered non-marketable and subject to the normal partnership distribution rules. As a result of this distribution, she has a zero basis in her partnership interest and ---
a. a $5,000 capital gain, a $15,000 basis in securities and a $10,000 basis in inventory
b. a $5,000 capital loss, a $10,000 basis in securities and a $5,000 basis in inventory
c. no gain or loss, a $15,000 basis in securities and a $5,000 basis in inventory
d. no gain or loss, a $10,000 basis in securities and a $10,000 basis in inventory
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