Lynns basis in her partnership interest is $9,000 when she receives a nonliquidating distribution of $5,000 cash

Question:

Lynn’s basis in her partnership interest is $9,000 when she receives a nonliquidating distribution of $5,000 cash and land having a $6,000 adjusted basis and a $12,000 FMV.
a. What gain or loss does the partnership recognize when making the distribution?
b. What are the amount and character of the income or gain Lynn must recognize on the distribution?
c. What is Lynn’s basis in the land?
d. What is Lynn’s basis in her partnership interest after the distribution?

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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