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Question - Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $50,000 basis in their partnership interests. On December 31, the partnership makes a pro-rata operating distribution to Teresa of $40,000 cash and stock with a fair value of $20,000 (inside basis of $7,000). What is Teresa's basis in the stock after distribution? What is her remaining "outside" basis in HT?
May 11 Completed a tax assignment and billed client $2,100 for services provided, Prepare a trial balance on May 31, 2010
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