Accounts receivable-inventory and partnership interest


At the beginning of the year, Elsie's basis in the E&G Partnership interest is $60,000. She receives a proportionate non-liquidating distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $30,000), and inventory (basis of $10,000, fair market value of $20,000). After the distribution, Elsie's bases in the accounts receivable, inventory, and partnership interest are:

A. 30,000; $10,000; and $10,000

B. $0; $20,000; and $30,000.

C. $30,000; $20,000; and $0

D. $0; $10,000; and $40,000

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Accounting Basics: Accounts receivable-inventory and partnership interest
Reference No:- TGS039566

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