Nicole's basis in her partnership interest was $160,000, including her $50,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Nicole receives $30,000 cash and accounts receivable with a $50,000 basis and a $52,000 fair market value to the partnership. What gain or loss does Nicole recognize, and what is her basis in the accounts receivable? $60,000 loss; $50,000 basis. $30,000 loss; $50,000 basis. O $28,000 loss; $52,000 basis. $78,000 loss; $52,000 basis. O $0 loss; $80,00 basis.
Nicole's basis in her partnership interest was $160,000, including her $50,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners. Nicole receives $30,000 cash and accounts receivable with a $50,000 basis and a $52,000 fair market value to the partnership. What gain or loss does Nicole recognize, and what is her basis in the accounts receivable? $60,000 loss; $50,000 basis. $30,000 loss; $50,000 basis. O $28,000 loss; $52,000 basis. $78,000 loss; $52,000 basis. O $0 loss; $80,00 basis.
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Transcribed Image Text:Nicole's basis in her partnership interest was $160,000, including her $50,000
share of partnership liabilities. The partnership decides to liquidate, and after
repaying all liabilities, distributes all remaining assets proportionately to the
partners. Nicole receives $30,000 cash and accounts receivable with a $50,000
basis and a $52,000 fair market value to the partnership. What gain or loss does
Nicole recognize, and what is her basis in the accounts receivable?
$60,000 loss; $50,000 basis.
$30,000 loss; $50,000 basis.
O $28,000 loss; $52,000 basis.
$78,000 loss; $52,000 basis.
O $0 loss; $80,00 basis.
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ISBN:
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Author:
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Publisher:
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