Landon received $50,000 cash and a capital asset (basis of $70,000 and fair market value of $80,000)
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Question:
Landon received $50,000 cash and a capital asset (basis of $70,000 and fair market value of $80,000) in a proportionate liquidating distribution. His basis in his partnership interest was $100,000 prior to the distribution. How much gain or loss does Landon recognize and what is his basis in the asset received?
A.$0 gain or loss; $70,000 basis
B.$0 gain or loss; $50,000 basis
C.$20,000 gain; $70,000 basis
D.$30,000 gain; $70,000 basis
E.$30,000 gain; $80,000 basis
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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