Computing basis in the inventory received

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Reference no: EM13142096

Suzy owns a 25% capital and profits interest in the calendar-year SJDV Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $200,000. On that date, she receives a proportionate nonliquidating current distribution of the following assets:

Partnership's Basis in Asset Asset's Fair Market Value

Cash $ 80,000 $ 80,000

Inventory 130,000 150,000

Land 90,000 105,000

a. Calculate Suzy's recognized gain or loss on the distribution, if any.

b. Calculate Suzy's basis in the inventory received.

c. Calculate Suzy's basis in land received. The land is a capital asset.

d. Calculate Suzy's basis for her partnership interest after the distribution.

Reference no: EM13142096

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