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David’s basis in the Jimsoo Partnership is $54,500. In a proportionate liquidating distribution, David receives cash...

David’s basis in the Jimsoo Partnership is $54,500. In a proportionate liquidating distribution, David receives cash of $7,300 and two capital assets: (1) Land A with a fair market value of $20,600 and a basis to Jimsoo of $16,450, and (2) Land B with a fair market value of $10,225 and a basis to Jimsoo of $16,450. Jimsoo has no liabilities.

b. What is David’s basis in the distributed assets? (Round your intermediate and final answers to the nearest whole dollar amount.)

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Answer #1
Cash $7,300
land 1 $ 27,383
Land 2 $ 19,817
Land 1 Land 2
Basis to Jimsoo $ 16,450 $       16,450
Excess outside basis (20600-16450); $   4,150
54500-(16450+16450+7300) = 14,300
Balance Allocation (14300-4150) = $10,150
Basis allocation $   6,783 $         3,367
20600/(20600+10225)*10150
10225/(20600+10225)*10150
Total $ 27,383 $       19,817
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