Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jenna harvey has a $50,000 outside basis in her pa

Jenna Harvey has a $50,000 outside basis in her partnership interest and decides to terminate...

90.2K

Verified Solution

Question

Accounting

Jenna Harvey has a $50,000 outside basis in her partnership interest and decides to terminate her interest. She receives the following from the partnership: Item Fair Value Partnerships Basis Cash 30,000 30,000 Securities* 15,000 10,000 Inventory 10,000 5,000 * The securities are considered non-marketable and subject to the normal partnership distribution rules. As a result of this distribution, she has a zero basis in her partnership interest and ---

a. a $5,000 capital gain, a $15,000 basis in securities and a $10,000 basis in inventory

b. a $5,000 capital loss, a $10,000 basis in securities and a $5,000 basis in inventory

c. no gain or loss, a $15,000 basis in securities and a $5,000 basis in inventory

d. no gain or loss, a $10,000 basis in securities and a $10,000 basis in inventory

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students