Essay
The December 31,2012,balance sheet of the BCD General Partnership reads as follows.
Each partner shares in 1/3 of the partnership capital,income,gain,loss,deduction,and credit.Capital is not a material income-producing factor to the partnership.On December 31,2012,general partner Christina receives a distribution of $140,000 cash in liquidation of her partnership interest under § 736.Nothing is stated in the partnership agreement about goodwill.Christina's outside basis for the partnership interest immediately before the distribution is $84,000.
How much is Christina's recognized gain from the distribution and what is the character of the gain?
Correct Answer:
Verified
Christina will recognize $47,000 of ordi...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q16: Megan's basis was $100,000 in the MAR
Q17: In a proportionate nonliquidating distribution of cash
Q37: Aaron owns a 30% interest in a
Q60: Your client has operated a sole proprietorship
Q64: The December 31,2012 balance sheet of GRT
Q68: In a proportionate liquidating distribution in which
Q124: Zach's partnership interest basis is $80,000.Zach receives
Q126: In a proportionate liquidating distribution, UVW Partnership
Q149: Lori, a partner in the JKL partnership,
Q159: Suzy owns a 30% interest in the