Sale of partnership interest

Assignment Help Advanced Statistics

Reference no: EM13114777

Sue and Linda are equal partners in a partnership. Both partners had a basis of $160,000 on the date Sue decides to sell 1/2 of her share. On that date, Sue sells 1/2 of her interest to Alice for $60,000 cash.

Partnership assets on the sale date were:

Basis FMV Inc(dec)
Cash $100,000 $100,000 0
Acc Rec $ 80,000 $ 90,000 10,000
Equip $100,000 $120,000 20,000
Total $280,000 $310,000 30,000

A. Based on the partners basis and FMV of its assets - is there any Sec 751 property?

B. What is the amount and character of Sue's recognized gain or loss on the sale? What is her remaining basis in his partnership interest?

Reference no: EM13114777

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