Which of the following distribution scenarios shows the proper order in which these assets should be considered

Question:

Which of the following distribution scenarios shows the proper order in which these assets should be considered in a partnership distribution having a total inside basis exceeding the outside basis of the distributee partner?

a. Cash, unrealized depreciation recapture income, unimproved land

b. Improved land, cash, inventory

c. Cash, inventory, marketable securities

d. Unrealized depreciation recapture income, cash, unimproved land

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...