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Walter receives cash of $18,000 and land with a fair

Walter receives cash of $18,000 and land with a fair

Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000.
a. What amount of gain must Walter recognize as a result of the current distribution?
$______________
b. What amount of gain must the partnership recognize as a result of the distribution?
$______________
c. What is Walter’s basis in his partnership interest immediately after the distribution?
$______________

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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