Catherine's basis was $30,000 in the CAR Partnership just before she received a proportionate nonliquidating...
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Accounting
Catherine's basis was $30,000 in the CAR Partnership just before she received a proportionate nonliquidating distribution consisting of land held for investment with a basis to CAR of $40.000 (value of $60,000), and inventory with a basis of $40,000 (value of $40,000). After the distribution, Catherine's bases in the land and inventory are:
A- $60,000 (land): $40,000 (inventory
B- $40,000 (land): $40,000 (inventory).
C- $0 (land): $30.000 (inventory).
D- $15.000 (land); $15.000 (inventory).
E- None of these statements is correct.
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