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Ariel Receives from Her Partnership a Nonliquidating Distribution of $9,000

Question 118

Multiple Choice

Ariel receives from her partnership a nonliquidating distribution of $9,000 cash plus a parcel of land. The partnership had purchased the land five years ago for $20,000, but it is worth $28,000 at the time of the distribution. Ariel's predistribution basis is $17,000. How much income will Ariel recognize due to the distribution, and what is her basis in the land?


A) Ariel receives from her partnership a nonliquidating distribution of $9,000 cash plus a parcel of land. The partnership had purchased the land five years ago for $20,000, but it is worth $28,000 at the time of the distribution. Ariel's predistribution basis is $17,000. How much income will Ariel recognize due to the distribution, and what is her basis in the land? A) B) C) D)
B) Ariel receives from her partnership a nonliquidating distribution of $9,000 cash plus a parcel of land. The partnership had purchased the land five years ago for $20,000, but it is worth $28,000 at the time of the distribution. Ariel's predistribution basis is $17,000. How much income will Ariel recognize due to the distribution, and what is her basis in the land? A) B) C) D)
C) Ariel receives from her partnership a nonliquidating distribution of $9,000 cash plus a parcel of land. The partnership had purchased the land five years ago for $20,000, but it is worth $28,000 at the time of the distribution. Ariel's predistribution basis is $17,000. How much income will Ariel recognize due to the distribution, and what is her basis in the land? A) B) C) D)
D) Ariel receives from her partnership a nonliquidating distribution of $9,000 cash plus a parcel of land. The partnership had purchased the land five years ago for $20,000, but it is worth $28,000 at the time of the distribution. Ariel's predistribution basis is $17,000. How much income will Ariel recognize due to the distribution, and what is her basis in the land? A) B) C) D)

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