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    Income Tax: Corporations & Partnerships True or False

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    True/False

    Mail, a partner in the MB Partnership, receives a proportionate, nonliquidating distribution of property having a fair market value of $16,000 and a partnership basis of $23,000. Mail's basis in the partnership is $10,000 before the distribution. In this situation, Mail will take a $10,000 basis in the property, and his basis in the partnership interest is reduced to zero.

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    https://brainmass.com/business/accounting/income-tax-corporations-partnerships-227072

    Solution Summary

    The solution determines if it is true of the partnership interest is reduced to zero.

    $2.19

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