Income tax: Partnership
Not what you're looking for?
2. James received $42,000 cash and a capital asset (basis of $45,000 and fair market value of $54,000) in a proportionate liquidating distribution. His basis in his partnership interest was $90,000 prior to the distribution. How much gain or loss does James recognize and what is his basis in the asset received?
a. $0 gain or loss; $45,000 basis.
b. $0 gain or loss; $48,000 basis.
c. $6,000 gain; $54,000 basis.
d. $3,000 loss; $45,000 basis.
e. $3,000 gain; $45,000 basis.
Purchase this Solution
Solution Summary
The basis in the assets received are analyzed.
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.