Reference no: EM132104632

Questions -

Q1. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the land distributed to the partner?

a. 0

b. $20,000

c. $15,000

d. $10,000

Q2. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the partner's partnership interest at the close of last year?

a. $90,000

b. $65,000

c. $80,000

d. $110,000

Q3. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $40,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $55,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. How much is includible in each partner's gross income for the year as the result of the distribution?

a. $10,000

b. $55,000

c. $25,000

d. $5,000

e. 0

Q4. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $40,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $55,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the land distributed to the partner?

a. 0

b. $20,000

c. $15,000

d. $10,000

e. $5,000