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Kase's Interest in the equal GFH Partnership is lquidated when the KMD Partnership makes a...

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Accounting

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Kase's Interest in the equal GFH Partnership is lquidated when the KMD Partnership makes a Liquidating Distribution to Katie and the remaining Paytrers assume Kafe's shave of the Partnership Liablities. Katie recowes $12,000 in Cash, Accounts Recervable of $21,000 (Fair Market Value) and Equipment worth (Fair Market Value) of $47,000. On the date of the Liquidation, the Partnership's Cash Basis Balance Sheet refected the following: Cash (Adjusted Basis - $00,000;; Fair Market Value - \$60,000); Unrealized Receivabie (Adjusted Basis - \$-0.; Fair Market Value - \$63,000); Equipment (Adjusted Basis - \$72,000; Fair Market Value - \$141,000) (Total Assets: Adjusted Basis - \$132,000; Fair Market Value - \$264,000); Notes Payable (Adjusted Basis - \$24,000; Far Market Value - \$24,000); Capital Accounts: Kabie Capital (Adjusted Basis $36,000; Fair Market Value - $80,000); Mae Captal (Adjasted Dasis - \$36,000; Fair Market Valve - $80,000); Debra Capital (Adpussed Basis - $36,000, Fair Market Value - $20.000 Ordinary income and $24,000 Capital Gain. $4,000 Ordinary income and \$0. Capital Gain. $24,000 Ordinary income and \$20,000 Copital Gain. No Recognized Gain or Loss

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