Question

Partner N of the LMN partnership receives a liquidating distribution of the following: Basis                           

Partner N of the LMN partnership receives a liquidating distribution of the following:

Basis                            FMV

Cash   $50,000                       $50,000

Inventory                    $35,000                       $45,000

Unrealized Receiv.    $75,000                       $53,000

Land    $30,000                       $45,000

N’s basis in her partnership interest was $275,000. What is her gain or loss and the bases of the assets distributed to her?

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Answer #1
On basis of FMV ,N got following value of assets
Cash $        50,000
Inventory $        45,000
Unrealized receivables $        53,000
Land $        45,000
Total value of assets received to N $     1,93,000
NOTE- Received by Z 193,000 N share in partnership (275,000) Loss /Less received by N (82,000)
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