At the beginning of the year, Elsie's basis in the E&G Partnership interest is $60,000. She receives
Fantastic news! We've Found the answer you've been seeking!
Question:
At the beginning of the year, Elsie's basis in the E&G Partnership interest is $60,000. She receives a proportionate non liquidating distribution from the partnership consisting of$10,000 of cash, unrealized accounts receivable (basis of $0, fair market value of $30,000), and inventory (basis of $10,000, fair market value of $20,000). After the distribution, Elsie's bases in the accounts receivable, inventory, and partnership interest are:
| a. $0; $10,000; and $40,000. |
| b. $0; $20,000; and $30,000. |
| c. $30,000; $10,000; and $10,000. |
| d. $30,000; $20,000; and $0. |
| e. None of the above. |
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date: