In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution: Office furnishing (fair market value of $100,000 and basis to partnership of $30,000) $40,000 of cash Inventory (fair market value of $100,000 and basis to partnership of $20,000) Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000 How would your answers to the above questions change if the distribution were a non- liquidating distribution?
In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution: Office furnishing (fair market value of $100,000 and basis to partnership of $30,000) $40,000 of cash Inventory (fair market value of $100,000 and basis to partnership of $20,000) Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000 How would your answers to the above questions change if the distribution were a non- liquidating distribution?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2021, Autumn Partnership distributes the following assets to Spring Dupont (a partner in the partnership) in a proportionate, liquidating distribution:
- Office furnishing (fair market value of $100,000 and basis to partnership of $30,000)
- $40,000 of cash
- Inventory (fair market value of $100,000 and basis to partnership of $20,000)
Prior to the distribution Spring Dupont had an outside basis in the Autumn Partnership of $200,000
How would your answers to the above questions change if the distribution were a non- liquidating distribution?
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