Partnership interest following distribution

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Reference no: EM13132373

Becky has a $24,000 basis in her partnership interest. She receives a current distribution of $4,000 cash, unrealized receivables with a basis of $12,000 and a FMV of $16,000, and land held as an investment with a basis of $3,000 and a FMV of $8,000. The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. The basis of her partnership interest following the distribution is:

a. $5,000

b. $1,000

c. $0

d. ($4,000)

Reference no: EM13132373

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