The LQD Partnership distributes the following property to Larry in a distribution that liquidates Larry€™s interest in the partnership. Assume that no Sec. 754 election is in effect. Larry€™s basis in his partnership interest before the distribution is $40,000. The adjusted bases and FMVs of the distributed property to the partnership before the distribution are as follows:

a. Determine Larry€™s basis in each distributed asset.
b. Same as Part a except Larry€™s partnership basis before the distribution is $46,500.
c. Same as Part b except the basis of capital asset 2 is $20,000 instead of $15,000.
d. Same as Part c except Larry€™s partnership basis before the distribution is $34,500.

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Assets Partnership's Basis FMV Cash S 2,500 S 2,500 Inventory Capital asset 1 Capital asset 2 8,000 9,000 10,000 15,000 15.000 17.500 Total S35,500 S44,000