Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of
$ at the end of the current year, prior to any distribution. On December each receives an operating distribution. Coy
receives $ cash. Matt receives $ cash and a parcel of land with a $ fair market value and a $ basis to the
partnership. Matcoy has no debt or hot assets.
a What is Coy's recognized gain or loss? What is the character of any gain or loss?
b What is Coy's ending basis in his partnership interest?
c What is Matt's recognized gain or loss? What is the character of any gain or loss?
d What is Matt's basis in the distributed property?
e What is Matt's ending basis in his partnership interest?
