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Jamie's basis in her partnership interest is $52,000

Accounting

Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each.

 

a. How much gain or loss, if any, must Jamie recognize on the distribution?

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