Question:

Daniels's basis in his partnership interest was $$150,000$ including his $$40,000$ share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Daniel receives $$30,000$ cash and inventory with a $$50,000$ basis and a $$58,000$ FMV to the partnership. What loss does Daniel recognize, and what is his basis in the inventory?

Answer rating: 100% (QA)

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