Perry Partnership distributed cash of $15,000 and a parcel of land in a liquidating distribution to Gupta,

Question:

Perry Partnership distributed cash of $15,000 and a parcel of land in a liquidating distribution to Gupta, a partner. The land had a fair market value of $50,000 and an inside basis of $52,000 at the time of the distribution. Gupta’s outside basis in Perry just prior to the distribution was $70,000. What is Gupta’s resulting basis in the land?

a. $50,000

b. $55,000

c. $53,000

d. $52,000

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...