Compute the partners recognized gain or loss


Problem:

Each of the following independent cases describes a liquidating distribution to a partner. Compute the partner's recognized gain or loss and basis in any property received.

(a) Hobson Corporation received $30,000 cash. Its outside basis was $37,500.

(b) Mrs. Chang received $30,000 cash. Her outside basis was $22,000.

(c) Ms. Mallory received $18,000 cash and a partnership capital asset ($10,000 FMV and $1,200 inside basis). Her outside basis was $22,000.

(d) Dowling Inc. received $6,300 cash and a partnership capital asset ($50,000 FMV and $45,000 inside basis). Its outside basis was $30,000.

(e) Ms. Anitra received a partnership capital asset ($100,000 FMV and $70,000 inside basis). Her outside basis was $40,000.

(f) Lincoln Corporation received $20,000 cash and a partnership capital asset ($3,000 FMV and $2,200 inside basis). Its outside basis was $19,000.

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Accounting Basics: Compute the partners recognized gain or loss
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