Question: Problem 11-33 (LO. 3, 13) Michelle has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Michelle receives

Problem 11-33 (LO. 3, 13) Michelle has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Michelle receives $5,000 cash and a car (a 1231 asset to the partnership) having a basis of $20,000 to the partnership and a fair market value of $30,000. Disregard any potential depreciation recapture on the car.

b. What basis will Michelle take in the car?

answer IS NOT $20,000, $30,000, or $0

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!

style = "font - family:Verdana, Arial, sans - serif;font - size: 1 2 px;line - height: 1 . 7 5 ;margin - bottom: 0 px;margin - left: 0 px;margin - right: 0 px;margin - top: 0 px;padding: 5 px 0 px ....

QUESTION 1 Money Corporation has the following income and expenses for the tax year: Gross profit on sales: $200,000 Expenses: 700,000 Dividends received from less-than-20%-owned domestic...

PLEASE FILL UP ALL THE 1040 FORMS THAT ARE LISTED (SCHEDULE A, B, C, D, E, SE, FORM 8949, AND SCHEDULE 1) Thank you. forms can be downloaded on the IRS website Practice Set #2.pdf + E C O File...

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...

Using the information below, complete a 2020 tax return for Raphael and Michelle Yustis . The taxpayers have not received a notice from the IRS or any state or local taxing authority within the last...

I need help working through this problem. Most of the work I have completed but I need help ensuring that my answers are correct before submitting the assignment. I have attached the problem...

Name: Surf & Tanks, LLC EIN: 89-64621201 Business: Wholesaler of branded beach wear. Due Date: Dec 2, 2024 Assignment: Draft a complete tax return. Only prepare the Mad Money, LLC schedule K-1....

Name: Surf & Tanks, LLC EIN: 89-64621201 Business: Wholesaler of branded beach wear. Assignment: Draft a complete tax return. Only draft the Mad Money, LLC schedule K-1. Answer the questions below....

Instructions Form 1040 Schedule 1 Schedule 2 Schedule B Schedule C Form 1040 Complete the Coles' Form 1040. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income...

Actinium-227 decays by alpha decay or beta decay and is part of a long decay sequence, shown in Fig. 29.8. Write all the possible nuclear decays for the decay series from 227Ac to 215Po. Identify the...

Montreal First Bank is selling forward contracts on the USD/CAD exchange rate. What exchange rate would they require for a three-month forward rate. If the spot rate is C$ 1.0200/USD and the interest...

Which of the following sections of the statement of cash flows include purchases and sales of long - term assets?

If the following join statement is used to join two tables in a query, which of the following tables would all of the tuples in the relation appear in results? left join university.students on...