Carl's Basis in His LLC Interest Is $10,000

True/False

Carl's basis in his LLC interest is $10,000. In a current nonliquidating) distribution, Carl receives land basis =
$10,000; fair market value = $12,000); and inventory basis = $6,000; fair market value = $8,000). Carl takes a
$10,000 basis in the land and a $0 basis in the inventory, and has a $0 basis in the LLC interest.