Question: AZ LLC is liquidating, and A receives a final distribution of inventory with a fair market value of $20,000 and an adjusted basis of $8,000.

AZ LLC is liquidating, and A receives a final distribution of inventory with a fair market value of $20,000 and an adjusted basis of $8,000. A's basis in the partnership is $13,000. What are the tax consequences to A? Assume Sec. 751(b) does not apply.

a. $20,000

b. $84,000

c. $114,000

d. $100,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

3. (TCO 2) Bow Inc., a closely held corporation (not a PSC), has a $350,000 loss from a passive activity, $135,000 of active income, and $160,000 of portfolio income. How much is Bow's taxable...

1-A partner's interest in a partnership is decreased by: a.Additional contributions by the partner. b.Taxable income of the partnership. c.Capital gains of the partnership. d.Distributions from the...

Please Help with this Hypothetical 1065 Tax Return.. Form 1065 Due Thursday, November 12 by 5:00 PM CST US Check Figures - Form 1065 Page 1, Line 22 (Ordinary Business Income) - $156,275 Page 5, Line...

Which of the following properties is a capital asset? a. Artwork displayed in the taxpayers home b. Inventory c. Equipment used in a business d. Offi ce building e. None of the above A single...

I have about half of this assignment completed. It is due this evening. Let me know if you can complete it and send me an email about price. Nicholas Janzen 05/26/2017 Financial Reporting Dr. Dennis...

Problem 1 - Debt-Recourse The equal DEF partnership has the following balance sheet: Cash and other assets $400,000 Recourse liabilities $100,000 Capital - D $100,000 Capital - E $100,000 Capital - F...

Tax Accounting. I am looking for the correct answers for each of these 23questions with ANEXPLANATION FOR EACH ANSWER. If you think you can answer all of them Correctly, let me know. (Please see the...

Dear Tutor, Can you please help do problem #1, #6 and #7 in the midterm file? Thank you. I have attached the ebook too, the problems should be covered by chapter 21, may in Chapter 27 and 28. Thank...

I do need help with these questions to prepare for my final exam ACC 352 OL Final Assessment - Summer, 2015 - Please use Answer Sheet Below: 1. Betty contributed property with a $40,000 basis and...

Define x as a symbolic variable and create the two symbolic expressions S1 = x2(x - 6) + 4(3x - 2) and S2 = (x + 2)2 - 8x Use symbolic operations to determine the simplest form of each of following...

Find the solution to the initial value problem. y"+ 9y = 18 x?6 y(o1=1, y'l0)=1 %3D

The International Monetary Fund is part of the global financial system. True False

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

A You know that both Ellen and Steve rely on you as a friend (and in Ellens case, as family). How can you maintain your relationships with both of them even as their relationship with each other is...

1. The engagement in and resolution of interpersonal conflict are often key factors in romantic comedies (like Life As We Know It and When Harry Met Sally), as well as in buddy-driven action films...

2. For an interesting look at conflict and debate, you need not search further than the U.S. Congress. Debates on the floor of the Senate and House of Representatives are broadcast on C-SPAN and...