Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her atcapital...
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Accounting
Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her atcapital basis for her partnership interest on July 1 of the current year is $200,000. On that date, she receives a proportionate nonliquidating distribution of the following assets:
Partnership Basis in Asset
Asset Fair Market Value
Cash
$120,000
$120,000
Inventory
$50,000
$60,000
Lan(Held for Investment
$70,000
$100,000
a. Calculate Karlis recognized gain or loss on the distribution.
b. Calculate Karlis basis in the inventory received.
c. Calculate Karlis basis in land received. The land is a capital asset.
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