What basis will W take in the partnership

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Question - The XYZ partnership has the following balance sheet: With equal sharing rights

Basis FMV

Land $66,000 $51,000

Accounts Receivable 0 15,000

Inventory 24,000 45,000

Collectibles 3,000 9,000

$93,000 $120,000

Liabilities $30,000 $30,000

Capital, X 21,000 30,000

Capital, Y 21,000 30,000

Capital, Z 21,000 30,000

$93,000 $120,000

If X sells her partnership interest to W for $30,000 cash, what is her gain or loss, and what is its character? What basis will W take in the partnership?

If a Se 754 election is in place, what will the balance sheet look like after the transaction?

Reference no: EM132975821

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