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Larry has a $40,000 basis in his partnership interest before receiving a liquidating distribution of...

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Accounting

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Larry has a $40,000 basis in his partnership interest before receiving a liquidating distribution of $8,000 cash and land with a $40,000FMV and a $24,000 basis to the partnership. Assume that any distribution involving Sec. 751 property is pro rata and that any precont ibution gains have been recognized before the distribution. Required: e) Determine Larry's recognized gain or loss, and Larry's basis in distributed property, f) How does your answer to Part (a) change if the partnership's basis in the land is $34,000 instead of $24,000 ? g) How does your answer to Part (a) change if Larry receives $48,000 cash instead of $8,000 (along with land)? h) How does your answer to Part (a) change if, in addition to the cash and land, Larry receives inventory with a $25,000FMV and a $12,000 basis and receivables with a $4,000FMV and a zero basis? Clearly show your work and label your answers

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