Question: Bob receives a proportionate current (nonliquidating) distribution when the basis of his Star Partnership interest is $55,000. The distribution from Star Partnership consists of $32,000

Bob receives a proportionate current (nonliquidating) distribution when the basis of his Star Partnership interest is $55,000. The distribution from Star Partnership consists of $32,000 in cash and property with an adjusted basis to Star Partnership of $30,000 and a fair market value of $32,500. Bob's basis in the noncash property is:

$32,000

$23,000

$32,500

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