Problem $21-41($LO $21-3)($Algo$)$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:

Partner Outside Basis

Adam $ $16,700$

Alyssa $ $16,700$

On December $31$ of the current year, the partnership makes a pro rata operating distribution of:

Partner Distribution

Adam Cash $ $23,800$

Alyssa Cash $ $10,550$

Property $ $13,250($FMV$)($$$9,950$ basis to partnership$)$