Required information Problem 21-46 (LO 21-4) (Algo) Skip to question [The following information...
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Required information
Problem 21-46 (LO 21-4) (Algo)
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The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:
Tax Basis
FMV
Cash
$ 49,800
$ 49,800
Accounts receivable
16,600
33,200
Inventory
87,000
128,400
Totals
$ 153,400
$ 211,400
On December 31, Taurin distributes $16,600 of cash, $11,067 (FMV) of accounts receivable, and $42,800 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $43,533.
Problem 21-46 Part c (Algo)
Required:
c1. If Emma's basis before the distribution was $60,033 rather than $43,533, what is Emma's recognized gain or loss?
c2. What is her basis in the distributed assets?
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