Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of $8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2) Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities. Required: c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain or loss)? c2. What is Mikaere's basis in distributed assets?
Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of $8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2) Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities. Required: c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain or loss)? c2. What is Mikaere's basis in distributed assets?
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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![Required information
[The following information applies to the questions displayed below.]
Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of
$8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2)
Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities.
Required:
c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain
or loss)?
c2. What is Mikaere's basis in distributed assets?
Complete this question by entering your answers in the tabs below.
Required C1 Required C2
What is Mikaere's basis in distributed assets?
Basis
Cash
Land 1
$
8,300
Land 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83863d62-e0c3-424d-8597-1e0f46b71860%2Fcf9f2605-e1ac-4c87-9fcf-94c3ff5bdf9d%2Fbo7ht9c_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of
$8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2)
Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities.
Required:
c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain
or loss)?
c2. What is Mikaere's basis in distributed assets?
Complete this question by entering your answers in the tabs below.
Required C1 Required C2
What is Mikaere's basis in distributed assets?
Basis
Cash
Land 1
$
8,300
Land 2
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