Erin 's basis in her Kiybron partnership interest is $3,300 Erin receives a distribution of $2,200 cash from Kiybron in complete liquidation of her interest Kiybron is an equal partnership with the following balance sheet Assets Tax Basis FMV Cash $ 2,200 $ 2,200 Stock (investment) 1,100 2,200 Land...

a Erin receives only money in the distribution and ...

Erin's basis in her Kiybron partnership interest is $3,300. Erin receives a distribution of $2,200 cash from

Question:

Erin's basis in her Kiybron interest is $3,300. Erin receives a of $2,200 cash from Kiybron in complete of her interest. Kiybron is an equal with the following balance sheet:
Assets:_____________Tax Basis______FMV
Cash.........................$ 2,200.......$ 2,200
Stock (investment)..........1,100..........2,200
Land...........................6,600..........2,200
Totals.......................$ 9,900.........$ 6,600
Liabilities and capital:
Capital - Erin......................3,300
- Carl............3,300
- Grace..........3,300
Totals...........................$ 9,900
a. What is the amount and character of Erin's recognized gain or loss? What is the effect on the assets?
b. If Kiybron has a §754 election in place, what is the amount of the special basis adjustment?
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... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... 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...