Question: Assume in Problem 47 that Barrys partnership interest is not sold to another partner. Instead, the partnership makes a liquidating distribution of $90,000 cash to

Assume in Problem 47 that Barry’s partnership interest is not sold to another partner. Instead, the partnership makes a liquidating distribution of $90,000 cash to Barry, and the remaining partners assume his share of the liabilities. How much gain or loss must Barry recognize? How is it characterized? Assume that Barry is a general partner, there is no provision for the payment for goodwill in the partnership agreement, and capital is not a material income-producing factor to the partnership.

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50000 The gain would be treated as 35000 ordinary income and 15000 capital gain Barry is treated und... View full answer

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