Questions -
Q1. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the land distributed to the partner?
a. 0
b. $20,000
c. $15,000
d. $10,000
Q2. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the partner's partnership interest at the close of last year?
a. $90,000
b. $65,000
c. $80,000
d. $110,000
Q3. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $40,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $55,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. How much is includible in each partner's gross income for the year as the result of the distribution?
a. $10,000
b. $55,000
c. $25,000
d. $5,000
e. 0
Q4. The ABCD partnership has four partners. Each partner's adjusted basis in the partnership interest owned by that partner was $40,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner $55,000 in cash plus identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner's adjusted basis in the land distributed to the partner?
a. 0
b. $20,000
c. $15,000
d. $10,000
e. $5,000