Geartys adjusted basis in Worthington Company, a partnership. was $18,O(X at the time Gearty received the following

Question:

Gearty’s adjusted basis in Worthington Company, a partnership. was $18,O(X at the time Gearty received the following non-liquidating distributions of partnership property:

Cash............................$10000

Land

Adjusted basis...........14,000

Fair market value.......20,000

What is Gearty’s tax basis in the land received from the partnership?

a. $0

b. $8,000

c. $14,000

d. $20,000

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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