Question: a) A partnership has a complete proportional liquidation. Mark has a partnership basis of $50,000 and receives $20,000 cash and a capital asset with a

a) A partnership has a complete proportional liquidation. Mark has a partnership basis of $50,000 and receives $20,000 cash and a capital asset with a basis to the partnership of $25,000 and a fair market value of $40,000. What is his basis in the capital asset?

b) A partnership has a complete proportional liquidation. Neil has a partnership basis of $100,000 and receives $40,000 cash, inventory with a basis to the partnership of $30,000, and a capital asset with a partnership basis of $20,000. The inventory and capital asset have fair market values of $20,000 and $30,000, respectively. What is his basis in the inventory?

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