Problem related to proportionate nonliquidating distribution


Matt received a proportionate nonliquidating distribution. At the beginning of the partnership the basis of his partnership interest is $60,000. During the year, he received a cash distribution of $25,000 and a property distribution basis of $20,000 and FMV of $12000. Matts share of partnership liabilities was reduced by $20,000 during the year. How much gain or loss does Matt recognize, what is his basis in the property he received and what is his remaining basis in the partnership interest?

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Accounting Basics: Problem related to proportionate nonliquidating distribution
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