Alexandra received a $40,000 cash liquidating distribution for her 25 percent interest in ABC Partnership that had a $62,500 outside basis Immediately prior to the distribution, the partnership had the following assets $30,000 cash, unrealized receivable (zero basis, $60,000 fair market value), inv...

Alexandras as if proportionate distribution would be 7500 cash unre ...

Alexandra received a $40,000 cash liquidating distribution for her 25 percent interest in ABC Partnership that had

Question:

Alexandra received a $40,000 cash liquidating for her 25 percent interest in ABC that had a $62,500 outside basis. Immediately prior to the the had the following assets: $30,000 cash, unrealized receivable (zero basis, $60,000 fair market value), inventory ($20,000 basis, $40,000 fair market value), and land ($10,000 basis, $30,000 fair market value). The had no outstanding liabilities. What are the tax effects of this disproportionate on Alexandra's taxable income?
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... 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...