What gain or loss does borat recognize

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Problem 1: Borat owns a 20? % interest in a general partnership. In a current distribution? ( Borat remains a partner after the? distribution) Borat receives cash of? $50,000 and a piece of land with a fair market value of? $200,000 and a tax basis of ? $70,000. Borat's tax basis in his partnership interest immediately before the distribution was? $30,000. What gain or loss does Borat recognize and what is his basis in the land received in the distribution? ?

A. Gain recognized? $220,000; basis in land? $200,000

B. Gain recognized? $20,000 ; basis in land? $70,000

C. Gain recognized? $90,000 ; basis in land? $70,000

D. Gain recognized? $20,000; basis in land? $0

Reference no: EM132842369

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