Required information [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 $121,000 and Matthew's is $43,400. 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 Tax Basis $ 35,250 8,150 1,025 $ 44,425 $75,075 of capital loss $2,105 of capital gain c. What are the amount and character of Matthew's recognized gain or loss? Neither gain nor loss recognized $75,075 of ordinary loss $2,105 of ordinary income FMV $ 35,250 9,360 1,630 $ 46,240
Required information [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 $121,000 and Matthew's is $43,400. 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 Tax Basis $ 35,250 8,150 1,025 $ 44,425 $75,075 of capital loss $2,105 of capital gain c. What are the amount and character of Matthew's recognized gain or loss? Neither gain nor loss recognized $75,075 of ordinary loss $2,105 of ordinary income FMV $ 35,250 9,360 1,630 $ 46,240
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Ll.47.
![Required information
[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 $121,000 and Matthew's is
$43,400. 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
Tax Basis
$ 35,250
8,150
1,025
$ 44,425
FMV
$ 35,250
9,360
1,630
$ 46,240
c. What are the amount and character of Matthew's recognized gain or loss?
Neither gain nor loss recognized
$75,075 of ordinary loss
$2,105 of ordinary income
$75,075 of capital loss
$2,105 of capital gain](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11903c1-80f8-49f6-b032-0e22f7384d0f%2F33b59010-5273-453c-b339-27cdcd4a5788%2F6vdd2b_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 $121,000 and Matthew's is
$43,400. 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
Tax Basis
$ 35,250
8,150
1,025
$ 44,425
FMV
$ 35,250
9,360
1,630
$ 46,240
c. What are the amount and character of Matthew's recognized gain or loss?
Neither gain nor loss recognized
$75,075 of ordinary loss
$2,105 of ordinary income
$75,075 of capital loss
$2,105 of capital gain
![Required information
[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 $121,000 and Matthew's is
$43,400. 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
Cash
Inventory
Land
Tax Basis
Basis
$ 35,250
8,150
1,025
$ 44,425
d. What is Matthew's basis in the distributed assets?
FMV
$ 35,250
9,360
1,630
$ 46,240](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11903c1-80f8-49f6-b032-0e22f7384d0f%2F33b59010-5273-453c-b339-27cdcd4a5788%2F04ibs76_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 $121,000 and Matthew's is
$43,400. 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
Cash
Inventory
Land
Tax Basis
Basis
$ 35,250
8,150
1,025
$ 44,425
d. What is Matthew's basis in the distributed assets?
FMV
$ 35,250
9,360
1,630
$ 46,240
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