Cliff's basis in his Aero Partnership interest is $13,900. Cliff receives a distribution of $26,600 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance shee Tax Basis FMV $ 26,600 $ 26,600 11,700 3,400 Assets Cash Investment Land Totals Liabilities and capital Capital-Chris Capital-Cliff Capital-Cooper Totals 11,700 38,200 $41,700 $ 76,500 $ 13,900 $ 13,900 $ 13,900 41,700 $
Cliff's basis in his Aero Partnership interest is $13,900. Cliff receives a distribution of $26,600 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance shee Tax Basis FMV $ 26,600 $ 26,600 11,700 3,400 Assets Cash Investment Land Totals Liabilities and capital Capital-Chris Capital-Cliff Capital-Cooper Totals 11,700 38,200 $41,700 $ 76,500 $ 13,900 $ 13,900 $ 13,900 41,700 $
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
Related questions
Question
a. What are the amount and character of Cliff's recognized gain or loss?
b. Will the distribution have any effect on the
c. If Aero has a §754 election in place, what is the amount of the special basis adjustment?
d. What are the amount and character of Helen's recognized gain or loss?
e. Will the distribution have any effect on the partnership assets?
f. If Haywood has a §754 election in place, what is the amount of the special basis adjustment?
Transcribed Image Text:Cliff's basis in his Aero Partnership interest is $13,900. Cliff receives a distribution of $26,600 cash from
Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:
Tax Basis FMV
$ 26,600 $ 26,600
11,700 11,700
3,400 38,200
$41,700 $ 76,500
Assets
Cash
Investment
Land
Totals
Liabilities and capital
Capital-Chris
Capital-Cliff
Capital-Cooper
Totals
$ 13,900
$ 13,900
$ 13,900
$ 41,700
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT