Problem 11-39 (b) (LO. 3) Darby's basis in her partnership interest is $461,000. In a...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Problem 11-39 (b) (LO. 3) Darby's basis in her partnership interest is $461,000. In a proportionate distribution in liquidation of the partnership, Darby receives $27,000 cash and two parcels of land with bases of $80,000 and $300,000, respectively, to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $130,000 and $300,000 respectively. Round any division to two decimal places and use rounded amounts in subsequent computations.
a. Does Darby recognize any gain or loss on the distribution?
b. Darby's basis in the first property is $ , and her basis in the second property is $ .
c. If the land had been held as inventory, Darby would have allocated basis of $______ and $______ to the two parcels, and she would have realized and recognized a capital loss of $_____ .
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
