When Teris outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash,

Question:

When Teri’s outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash, an account receivable (fair market value of $60,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $60,000, inside basis to the partnership of $80,000). Teri remains a partner in the partnership, and the distribution is proportionate to the partners.

a. Determine the recognized gain or loss to the partnership as a result of this distribution.

b. Determine the recognized gain or loss to Teri as a result of the distribution.

c. Determine Teri’s basis in the land, account receivable, and TMF Partnership after the distribution.

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...