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Cindy sold her interest in a partnership for $28,000 cash when her outside basis was $5,000....

Cindy sold her interest in a partnership for $28,000 cash when her outside basis was $5,000. She was relieved of her $25,000 share of partnership liabilities. What is Cindy’s realized value from the sale of her partnership interest?
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Answer #1

Ans: Cindy net liability in the business on the date of sale

       = liability- outsider value

      = $ 25000-5000

    = $ 20000

Cindy’s realized value from the sale of her partnership interest = $ 28000 + 25000

                                                                                         = $ 53000

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