Rufus is a one quarter partner in the Adventure partnership On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest Adventure has only capital assets and no liabilities at the date of the distribution Rufus ' basis in his partnership int...

a Rufus recognizes a capital loss on the distribution of 5 ...

Rufus is a one-quarter partner in the Adventure partnership. On January 1 of the current year, Adventure

Question:

Rufus is a one-quarter partner in the Adventure On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete of his interest. Adventure has only capital assets and no liabilities at the date of the Rufus' basis in his interest is $18,500.
a. What is the amount and character of Rufus' recognized gain or loss?
b. What is the amount and character of Adventure's recognized gain or loss?
c. If Rufus' basis is $10,000 at the date rather than $18,500, what is the amount and character of Rufus' recognized gain or loss?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...