Question: my current selections are incorrect together. please help! Partner Walton receives a distribution of partnership property that is in complete liquidation of his partnership interest.
my current selections are incorrect together. please help!
Partner Walton receives a distribution of partnership property that is in complete liquidation of his partnership interest. His outside basis at the time of the distribution is $50,000. The properties he receives are the following: 1) Cash of $20,000 2) Liability release of $15,000 3) Inventory with a fair market value of $18,000 and an inside basis to the partnership of $10,000. SELECT ALL OF THE TRUE STATEMENTS FROM THE LIST BELOW!! He has no gain or loss on this distribution He has a loss of $5,000 on the distribution He has an outside basis of $0 after this distribution and no more interest in the partnership His basis in the inventory is $10,000 His basis in the inventory is $15,000
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