Problem 10-51 (LO 10-4) (Algo) [The following information applies to the questions displayed below.] Megan and Matthew are equal partners in the J & J Partnership (a calendar-year-end entity). On January 1 of the current year, they decide to liquidate the partnership. Megan's basis in her partnership Interest is $113,000 and Matthew's is $40,200. The two partners receive identical distributions, with each receiving the following assets: Note: Leave no answer blank. Enter zero if applicable. Cash Inventory Land Totals Problem 10-51 Part b (Algo) Tax Basis $ 33,250 6,950 825 $ 41,025 Cash Inventory Land b. What is Megan's basis in the distributed assets? Basis FMV $ 33,250 8,080 1,390 $ 42,720

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the…