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  3. problem 11-39 (b) (lo. 3) darby's basis in her par

Problem 11-39 (b) (LO. 3) Darby's basis in her partnership interest is $461,000. In a...

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Accounting

Problem 11-39 (b) (LO. 3) Darby's basis in her partnership interest is $461,000. In a proportionate distribution in liquidation of the partnership, Darby receives $27,000 cash and two parcels of land with bases of $80,000 and $300,000, respectively, to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $130,000 and $300,000 respectively. Round any division to two decimal places and use rounded amounts in subsequent computations.

a. Does Darby recognize any gain or loss on the distribution?

b. Darby's basis in the first property is $ , and her basis in the second property is $ .

c. If the land had been held as inventory, Darby would have allocated basis of $______ and $______ to the two parcels, and she would have realized and recognized a capital loss of $_____ .

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