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Problem 1: Basil has a a basis in her partnership interest of $24,000 and receives a distribution in complete liquidation of her interest of $18,000 in cash. The adjustment made by the partnership to its remaining assets if the Optional Basis Adjustment election is in effect is:
Option 1: $6,000 increase Option 2: $10,000 decrease Option 3: $6,000 decrease Option 4: $10,000 increase
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