Required information [The following information applies to the questions displayed below.] David's basis in the...
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Required information [The following information applies to the questions displayed below.] David's basis in the Jimsoo Partnership is $55,500. In a proportionate liquidating distribution, David receives cash of $7,500 and two capital assets: (1) Land A with a fair market value of $21,000 and a basis to Jimsoo of $16,750, and (2) Land B with a fair market value of $10,375 and a basis to Jimsoo of $16,750. Jimsoo has no liabilities. c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain o loss)? c2. What is David's basis in distributed assets? Complete this question by entering your answers in the tabs below. Req ci Req c2 What is David's basis in distributed assets? Basis Cash Land 1 Land 2
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