Preakness Partnership makes a current distribution to Prasad, consisting of $30,000 in cash, land with a fair market value of $50,000 (partnership basis $55,000), and inventory with a fair market value of $8,000 ($3,000 partnership basis) Immediately prior to the distribution, Prasads outside basis...

Preakness Partnership makes a current distribution to Prasad, consisting of $30,000 in cash, land with a fair

Question:

Preakness makes a current to Prasad, consisting of $30,000 in cash, land with a fair market value of $50,000 basis $55,000), and inventory with a fair market value of $8,000 ($3,000 basis). Immediately prior to the Prasad€™s outside basis in the was $35,000. What amount of gain will Prasad recognize on the and what is Prasad€™s resulting basis in the land?

Basis in Land Recognized Gain a. $3,000 $5,000 b. $0 $0 C. d. $0 $2,000 $3,000 $0

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...