The Crimson Partnership is a service-providing consulting firm, and Jana is a 20% general partner...
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Accounting
The Crimson Partnership is a service-providing consulting firm, and Jana is a 20% general partner with a $100,000 basis in her partnership interest. Crimson's assets consist of unrealized receivables (basis of $0, fair market value of $400,000), cash of $300,000, and land (basis of $200,000, fair market value of $300,000). If Crimson distributes $200,000 cash to Jana in liquidation of her interest in the partnership (and Crimson does not liquidate), Jana will recognize ordinary income of $80,000 and a capital gain of $20,000
TRUE
FALSE
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