Question - 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.
a. What amount of gain must Walter recognize as a result of the current distribution?
What is Walter's basis in the land received?
b. What amount of gain must the partnership recognize as a result of the distribution?
c. What is Walter's basis in his partnership interest immediately after the distribution?