Question: True or False A partnership distributes inventory with a basis of $30,000 and a value of $60,000 to its three partners who have a total

True or False

A partnership distributes inventory with a basis of $30,000 and a value of $60,000 to its three partners who have a total basis of $90,000 in their partnership interest. The distribution is non-liquidating. The partnership recognizes gain on the distribution, the partners are taxed on the gain, their bases are increased by the gain recognized, and their bases are reduced by the fair market value of the securities received.

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