#2. Jack basic in land, inventory, and partnership interest?#3. Which statement is true?

_. -__,.. -- "'"D -_-.-. __l.,..._. D'\"\" 2. Jack has a basis in a partnership interest of $300,000, including his $80,000 share of partnership debt: At the end of the current year, the partnership pays off its liabilities and makes a proportionate current (nonliquidating) distribution to its partners. Jack receives a parcel of land (partnership basis = $120,000, value = $135,000) and inventory (partnership basis = $160,000, value = $130,000). Following the distribution, what is Jack's basis in the land, inventory, and the partnership interest? . a. $120,000 basis in land, $160,000 basis in inventory, $20,000 basis in partnership. 1). $40,000 basis in land, $180,000 basis in inventory, $0 basis in partnership. c. $60,000 basis in land, $160,000 basis in inventory, $0 basis in partnership. d. $135,000 basis in land, $165,000 basis in inventory; $0 basis in partnership. ' e. $60,000 basis in land, $160,000 basis in inventory; $80,000 basis in partnership. 3. On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (adjusted basis of $200,000; fair market value of 3150,000) in exchange for her interest in the partnership. Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership fonnation'? a. Jason recognizes a $20,000 gain on his property transfer. b. Jason has a $200,000 tax basis for his partnership interest. c. Anna has a $200,000 tax basis for her partnership interest d. Anna realizes and recognizes a $50,000 loss. e. The partnership has a $200,000 adjusted basis in the land contributed by Arma. \\ Page 1 of 7