When Magdalenas outside basis is $58,000, she receives a liquidating distribution of $15,000 cash and...
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Accounting
When Magdalenas outside basis is $58,000, she receives a liquidating distribution of $15,000 cash and a proportionate share of inventory having a partnership basis of $20,000 and a fair market value of $24,000. The distribution results in a liquidation of both the partnership and her interest.
a. How much is Magdalenas basis in the inventory received?
Magdalenas basis in the inventory $24000 and her unutilized outside basis is $ 19000
b. What is the amount of any gain or loss recognized on the liquidation?
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