Kathy is a 25 percent partner in the KDP Partnership and receives a parcel of land with a fair value of $160,000 (inside basis of $120,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $210,000. KDP currently has a §754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution?   Multiple Choice   $0.   $40,000 positive basis adjustment.   $90,000 positive basis adjustment.   $90,000 negative basis adjustment.

Required information [The following information applies to the questions displayed below.] Melissa, Nicole, and Miguel are equal partners in the Opto Partnership (a calendar-year-end entity). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Totals Tax Basis $ 18,360 7,740 31,200 FMV $ 18,360 0 24,480 12,600 38,400 $ 57,300 $ 93,840 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $25,780. Note: Leave no answer blank. Enter zero if applicable. b. What is Melissa's basis in the distributed assets? Answer is not complete. Basis Cash $ 6,120 Accounts receivable $ Stock investment Land

[The following information applies to the questions displayed below.]Cliff’s basis in his Aero Partnership interest is $16,900. Cliff receives a distribution of $29,400 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:   Tax Basis FMV Assets     Cash $ 29,400 $ 29,400 Investment 16,900 16,900 Land 4,400 40,800 Totals $ 50,700 $ 87,100 Liabilities and capital     Capital—Chris $ 16,900   Capital—Cliff $ 16,900   Capital—Cooper $ 16,900   Totals $ 50,700     Problem 21-57 Part b (Algo)   b. If Aero has a §754 election in place, what is the amount of the special basis adjustment? please prvide correct solution

Subject: acounting