Could anyone help me with the question below.
X has a basis of $ 30k for his partnership interest. He receives as a current distribution the following as his pro-rata share of the partnership assets:
Basis FMV
Cash 5,000 5,000
Accounts Receivable 0 12,000
Land held for investment 10,000 13,000
TOTAL 15,000 30,000
1. What is X's gain or loss on the distribution?
2.What is his basis for the accounts receivable?
3. What is his basis for the land?
4. What is his basis for his partnership interest?
Thanks
X has a basis of $ 30k for his partnership interest. He receives as a current distribution the following as his pro-rata share of the partnership assets:
Basis FMV
Cash 5,000 5,000
Accounts Receivable 0 12,000
Land held for investment 10,000 13,000
TOTAL 15,000 30,000
1. What is X's gain or loss on the distribution?
2.What is his basis for the accounts receivable?
3. What is his basis for the land?
4. What is his basis for his partnership interest?
Thanks