Mark Receives a Nonliquidating Distribution of $10,000 Cash and a Parcel

Essay

Mark receives a nonliquidating distribution of $10,000 cash and a parcel of land having an adjusted basis of $18,000 and a fair market value of $25,000.
a. Mark's basis in his partnership interest prior to the distribution is $50,000.
b. Assume Mark's basis in his partnership interest is instead $22,000 and redetermine the responses to questions (1)through (4).