Solution-How much gain or loss will C recognize in

How much gain or loss will C recognize in connection

Reference no: EM132761331

Problem - The ABC Partnership has the following balance sheets at December 31:

	Basis	FMV
Cash	$45,000	$45,000
Accounts Receivable	0	108,000
Inventory	66,000	120,000
Land	420,000	285,000
	$531,000	$558,000
Capital, A	$177,000	$186,000
Capital, B	177,000	186,000
Capital, C	177,000	186,000
	$531,000	$558,000

On that date, C sells his interest in the partnership to unrelated buyer G for $186,000.

Required -

a. How much gain or loss will C recognize in connection with the sale to G?

b. What will be the character of C's gain or loss?

Reference no: EM132761331

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How much gain or loss will C recognize in connection

Reference no: EM132761331

Reference no: EM132761331

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