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a.)
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a
proportionate distribution of $16,000 cash, inventory with a $16,000 fair value (inside
basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of
$12,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis
in her JRD partnership interest is $20,000. What is Daniela's basis in the distributed
inventory and accounts receivable?
b.)
Daniela is a 25 percent partner in the JRD Partnership. On January 1, JRD makes a proportionate, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of $12,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD Partnership interest is $20,000. What is the amount and character of Daniela's gain or loss from the distribution?
a.)
Partnership interest= 20000
Cash basis= 16000
Pending amount of inventory and allocation= 20000- 16000
4000
(divide into two parts)
so,
Inventory amount = 4000/ 2= 2000
Account receivable amount= 4000/ 2= 2000
b.)
Daniela will deduct the basis of inventory which she receives in liquidation of her interest. That's why she will not recognize any gain or loss.
