QUESTION 30 Partner Jordan received a distribution of $90,000 cash from the JKL Partnership in complete...
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QUESTION 30 Partner Jordan received a distribution of $90,000 cash from the JKL Partnership in complete liquidation of his partnership interest. If his outside basis immediately before the distribution was $80,000 and if the partnership has made (and not revoked) a § 754 election in a prior year, which of the following statements is true? (Assume the partnership owns no hot assets.) O a. The partnership will step down the basis of its assets by $10,000. Ob. The partnership will step up the basis of its assets by $10,000. O c. Jordan will recognize a $10,000 capital gain on the distribution. d. Both a. and c. are true. Oe. Both b. and c. are true. QUESTION 30 Partner Jordan received a distribution of $90,000 cash from the JKL Partnership in complete liquidation of his partnership interest. If his outside basis immediately before the distribution was $80,000 and if the partnership has made (and not revoked) a § 754 election in a prior year, which of the following statements is true? (Assume the partnership owns no hot assets.) O a. The partnership will step down the basis of its assets by $10,000. Ob. The partnership will step up the basis of its assets by $10,000. O c. Jordan will recognize a $10,000 capital gain on the distribution. d. Both a. and c. are true. Oe. Both b. and c. are true.
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Correct option is B the partnership will step up the basis of its assets by 10000 Explanation A... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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