Required information Problem 21 57 (LO 21 4, LO 21 6) (Algo) Skip to question The following information applies to the questions displayed below Cliffs basis in his Aero Partnership interest is $16,900 Cliff receives a distribution of $29,400 cash from Aero in complete liquidation of his interest Aero is an equal partnership with the following balance sheet Tax Basis FMV Assets Cash $ 29,400 $ 29,400 Investment 16,900 16,900 Land 4,400 40,800 Totals $ 50,700 $ 87,100 Liabilities and capital CapitalChris $ 16,900 CapitalCliff $ 16,900 CapitalCooper $ 16,900 Totals $ 50,700 Problem 21 57 Part b (Algo) b If Aero has a 754 election in place, what is the amount of the special basis adjustment

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Question: Required information Problem 21-57 (LO 21-4, LO 21-6) (Algo) Skip to question [The following information applies to the questions displayed below.] Cliffs basis in his

Required information

Problem 21-57 (LO 21-4, LO 21-6) (Algo)

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[The following information applies to the questions displayed below.] Cliffs basis in his Aero Partnership interest is $16,900. Cliff receives a distribution of $29,400 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:

	Tax Basis	FMV
Assets
Cash	$ 29,400	$ 29,400
Investment	16,900	16,900
Land	4,400	40,800
Totals	$ 50,700	$ 87,100
Liabilities and capital
CapitalChris	$ 16,900
CapitalCliff	$ 16,900
CapitalCooper	$ 16,900
Totals	$ 50,700

Problem 21-57 Part b (Algo)

b. If Aero has a 754 election in place, what is the amount of the special basis adjustment?

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