Reference no: EM133029040

Question - Marla was a 10% partner in M Partnership. Marla's outside basis in her partnership interest is $200,000 (just prior to distribution). This year, the partnership distributed the following to Marla in a proportionate distribution and liquidated the entire partnership (partnership did not continue):

Cash: $25,000

Inventory: FMV = $50,000; inside basis = $20,000

Land: FMV = $80,000; inside basis = $80,000

Note: both inventory and land were purchased by the partnership

What is Marla's recognized gain or loss on the distribution? Enter gain as a positive number or loss as a negative number.

After the distribution, what is Marla's basis in the inventory?

After the distribution, what is Marla's basis in the land?