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Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a...

Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a §754 election in place. Alix sells one-half of her interest (25 percent) to Michael Tomei for $39,500 cash. Just before the sale, Alix’s basis in her entire partnership interest is $86,400, including her $39,500 share of the partnership liabilities. Tralix’s assets on the sale date are as follows:

Tax Basis FMV
Cash $ 48,550 $ 48,550
Inventory 39,500 128,000
Land held for investment 84,750 53,800
Totals $ 172,800 $ 230,350

b. What is Alix’s basis in her remaining partnership interest?

c. What is Michael’s basis in his partnership interest?

d. Does the sale on partnership's basis have any effect in the assets?( Yes/No)

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