Berdine has a basis of $32,000 in her partnership interest

Berdine has a basis of $32,000 in her partnership interest and receives land with an adjusted basis to the partnership of $78,000 in termination of her interest. (The partnership has no hot assets.)

a. Under the proportionate liquidating distribution rules, what is Berdine’s basis in the distributed land?

b. If an optional § 754 adjustment-to-basis election is in effect, by what amount does the partnership increase the basis of its remaining property?

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...

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