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Larry has a $40,000 basis in his partnership interest before receiving a current distribution of...

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Accounting

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Larry has a $40,000 basis in his partnership interest before receiving a current distribution of $8,000 cash and land with a $40,000FMV and a $24,000 basis to the partnership. Assume that any distribution involving Sec. 751 property is pro rata and that any precontribution gains have been recognized before the distribution. Required: a) Determine Larry's recognized gain or loss, Larry's basis in distributed property, and Larry's ending basis in his partnership interest. b) How does your answer to Part (a) change if the partnership's basis in the land is $34,000 instead of $24,000 ? c) How does your answer to Part (a) change if Larry receives $48,000 cash instead of $8,000 (along with land)? d) How does your answer to Part (a) change if, in addition to the cash and land, Larry receives inventory with a $25,000FMV and a $12,000 basis and receivables with a $4,000FMV and a zero basis? Clearly show your work and label your answers

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