Milton has a basis in his partnership of $300,000, including his $80,000 share of partnership liabilities. At the end of the current year the partnership pays off the liabilities and makes a proportionate current distribution to its partners. Milton receives a parcel of land (partnership
Milton has a basis in his partnership of $300,000, including his $80,000 share of partnership liabilities. At the end of the current year the partnership pays off the liabilities and makes a proportionate current distribution to its partners. Milton receives a parcel of land (partnership
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Transcribed Image Text:Milton has a basis in his partnership of
$300,000, including his $80,000 share of
partnership liabilities. At the end of the
current year the partnership pays off the
liabilities and makes a proportionate
current distribution to its partners. Milton
receives a parcel of land (partnership
basis of $120,000 and FMV of $135,000)
and inventory (partnership basis of
$160,000 and FMV of $180,000).
Following the distribution what is Milton's
basis in the inventory?
I'm not sure if it's 160,000 or not
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