Day’s adjusted basis in LMN Partnership interest is

$50,000. During the year Day received a nonliquidating distribution of $25,000 cash plus land with an adjusted basis of $15,000 to LMN, and a fair market value of $20,000.

How much is Day’s basis in the land?

954 MODULE 37 PARTNERSHIPS TAXATION

a. $10,000

b. $15,000

c. $20,000

d. $25,000 Items 61 and 62 are based on the following:

The adjusted basis of Jody’s partnership interest was

$50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of

$35,000.