THREE EASY MULTIPLE CHOICE QUESTIONS- PLEASE ANSWER ALL

Dan receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $30,000. The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500. Dan's basis in the noncash property is:

$24,000.

$10,000.

$20,000.

$26,500.

At the beginning of the year, Elsie's basis in the E&G Partnership interest is $90,000. She receives a proportionate current (nonliquidating) distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $50,000). After the distribution, Elsie's bases in the accounts receivable, land, and partnership interest are:

$0; $50,000; and $30,000.

$40,000; $40,000; and $0.

$40,000; $30,000; and $10,000.

$0; $30,000; and $50,000.

On December 31, the last day of the current taxable year, Jack has a basis in a partnership interest of $300,000, including his $80,000 share of partnership debt. On that date, the partnership pays off its liabilities and makes a proportionate current (nonliquidating) distribution to its partners. Jack receives a parcel of land (partnership basis = $120,000, value = $135,000) and inventory (partnership basis = $160,000, value = $180,000). Following the distribution, what is Jack's basis in the land, inventory, and the partnership interest?

$40,000 basis in land, $180,000 basis in inventory, $0 basis in partnership interest.

$60,000 basis in land, $160,000 basis in inventory; $80,000 basis in partnership interest.

$60,000 basis in land, $160,000 basis in inventory, $0 basis in partnership interest.

$120,000 basis in land, $160,000 basis in inventory, $20,000 basis in partnership interest.