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13.

Al (60%) & Bob (40%) are partners in ALBOB Partnership, and Al has an outside basis of $1,000,000 and a capital account balance of $1,000,000 prior to the distribution.

ALBOB distributes inventory ($110,000 FMV, $10,000 inside basis) to Al in a disproportionate current distribution.

What is the amount of gain (ordinary income gain) recognized by Bob?

14.

Al (60%) & Bob (40%) are partners in ALBOB Partnership, and Al has an outside basis of $1,000,000 and a capital account balance of $1,000,000 prior to the distribution.

ALBOB distributes inventory ($110,000 FMV, $10,000 inside basis) to Al in a disproportionate current distribution.

What is Al's basis in the inventory he received?

15.

Gabby is a 1/3 partner (capital and profits) in GAB Partnership (cash basis, calendar year partnership). At the beginning of the year, Gabbys outside basis is $100,000. Since the beginning of the year, GAB has had ordinary business income of $60,000. The partnership currently has the following assets:

• Cash: $300,000
• Unrealized receivables: FMV = $90,000 ($0 inside basis)
• Land: FMV = $90,000; $60,000 inside basis (purchased by GAB Partnership)

If Gabby sells her 1/3 partnership interest to George for $160,000, what is the amount of Gabbys gain or loss recognized? Enter gain as a positive number or loss as a negative number. Do not include in your answer the ordinary income that will be allocated to Gabby from the $60,000 ordinary business income, but make sure to adjust Gabby's basis before determining her gain/loss recognized.

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