10. A and B are equal partners. Their outside bases each exceed 20K. The partnership...

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Accounting

10. A and B are equal partners. Their outside bases each exceed 20K. The partnership has 30K cash and inventory with FMV 20K and basis 2K. The partnership distributes 20K cash to A and 20K worth of inventory to B. How is this treated for the partnership, A and B?

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