Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000.
If an amount is zero, enter "0".
a. What amount of gain must Walter recognize as a result of the current distribution? $
What is Walter's basis in the land received? $
Olson contributes property with an adjusted basis of $100,000 and a fair market value of $125,000 to O&W Associates, a partnership, in exchange for a 75 percent interest in the partnership. What is the partnership's basis in the property contributed?
a. $50,000
b. $75,000
c. $100,000
d. $125,000
e. None of these choices are correct.
Linda and Ellen form an equal partnership. Linda contributes cash of $20,000 in exchange for a 50 percent partnership interest. Ellen contributes property with a fair market value of $30,000 (adjusted basis of $18,000) and subject to a liability of $10,000 in exchange for her 50 percent interest in the partnership. What amount of gain must Ellen recognize as a result of her transfer of property to the partnership?
a. $0
b. $7,000
c. $14,000
d. $20,000
e. None of these choices are correct.
Trevor is a 50 percent partner in the Dalmatian Partnership. His basis in his partnership interest is $30,000 at the end of the tax year but before the partnership gives Trevor a cash distribution of $17,000. What is Trevor’s recognized income due to the $17,000 distribution, and what is his partnership basis after the distribution?
a. $17,000 income; $13,000 basis
b. $17,000 income; $30,000 basis
c. No income; $13,000 basis
d. No income; $30,000 basis