Calculate ruth recognized gain or loss on the distribution

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Ruth owns a 25% capital and profits interest in the calendar-year RDV Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $170,000. On that date, she receives a proportionate nonliquidating distribution of the following assets.

 

  Partnership's Basis in Asset

  Asset's Fair Market Value

Cash

$90,000

$90,000

Inventory

$110,000

$140,000

Land (held for investment)

$100,000

$160,000

(I) Calculate Ruth's recognized gain or loss on the distribution, if any.

(II) Calculate Ruth's basis in the inventory received.

(III) Calculate Ruth's basis in land received. The land is a capital asset.

Reference no: EM132444276

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