The following information applies to the questions displayed below.
The Taurin Partnership a calendaryearend entity has the following assets as of December of the current year:
Tax Basis FMV
Cash $ $
Accounts receivable
Inventory
Totals $ $
On December Taurin distributes $ of cash, $FMV of accounts receivable, and $FMV of inventory to Emma a onethird partner in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $
Required:
c If Emma's basis before the distribution was $ rather than $ what is Emma's recognized gain or loss?
c What is her basis in the distributed assets?
