Explore BrainMass

Explore BrainMass

    Income tax: Partnership

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    2. James received $42,000 cash and a capital asset (basis of $45,000 and fair market value of $54,000) in a proportionate liquidating distribution. His basis in his partnership interest was $90,000 prior to the distribution. How much gain or loss does James recognize and what is his basis in the asset received?

    a. $0 gain or loss; $45,000 basis.
    b. $0 gain or loss; $48,000 basis.
    c. $6,000 gain; $54,000 basis.
    d. $3,000 loss; $45,000 basis.
    e. $3,000 gain; $45,000 basis.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:21 pm ad1c9bdddf
    https://brainmass.com/business/accounting/income-tax-partnership-227086

    Solution Summary

    The basis in the assets received are analyzed.

    $2.19

    ADVERTISEMENT