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When Teris outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 of cash, an account receivable (fair market value of $60,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $60,000, inside basis to the partnership of $80,000). Teri remains a partner in the partnership, and the distribution is proportionate to the partners. a. Use the format of Concept Summary 21.4 to create a spreadsheet to calculate the effects of the distribution. Set up an Input area for the amounts on lines 1, 2, 5, and 8. Code the formulas shown in the Calculations section of the concept summary to calculate the amounts in the remaining lines. You will use sum, min, and max formulas. Enter Teris relevant facts in the input section of your spreadsheet. b. Based on the information in your spreadsheet, how much gain or loss will Teri recognize as a result of the distribution? Explain your answer. c. How much is Teris basis in the land, account receivable, and TMF Partnership after the distribution? What can you conclude regarding Teris basis in the assets and the fair market value she received? d. How would your answer to part (c) change if, instead, the partnerships basis in the land was $10,000 and its fair market value was $30,000 (and the cash and unrealized receivable distributions do not change)? Adjust the input section of your spreadsheet, and explain your findings.

You need to create the spreadsheet in Excel and have all the formulas and calculations there. There is NOT one provided.

Concept Summary 21.4 Proportionate Current Distributions (General Rules) Gains and Losses General rule: Partner's basis in distributed property equals partnership's basis before distribution (carryover basis). Exception: Where the partner's outside basis is less than the partnership's inside (property) basis, partner's outside basis is assigned to distributed property (substituted basis). Generally, neither the distributee partner nor the partner- ship recognizes any gain or loss on a proportionate current . Exception: Gain is recognized if cash (and deemed cash) distributions exceed the distributee partner's basis. Property distributions generally do not result in recognized gains or losses on a current distribution. .If the partner recognizes gain on a proportionate current Basis in Partnership Interest and Property Received . The partners basis in the partnership interest is reduced distribution, the gain is a capital gain. Neither the partner nor the partnership recognizes loss on a proportionate current distribution. . by the partner's basis in distributed property. Proportionate Current Distribution Inputs and Calculations Input the following information and complete the cakulations chart to determine the partner's gain or loss and basis in distributed property on a proportionate current distribution: Line 1 belowPartner's outside basis Line 2 below Step 1. Cash and deemed cash distributed Line 5 below Step 2. Partnership's basis in distributed hot assets Line 8 below Step 3. Partnership's basis in other distributed property 1. Partner's outside basis (input above). 2. Step 1. Cash and deemed cash distributed (input above). 3. Gain recognized by partner (excess of Line 2 over Line 1). 4. Partner's remaining outside basis (Line 1 -Line 2). If less than $O, enter $0 5. Step 2. Partnership's basis in distributed hot assets (input above). 6. Partner's basis in distributed hot assets (lesser of Line 4 or Line 5). 7. Partner's remaining outside basis (Line 4-Line 6). Cannot be so. 8. Step 3. Partnership's basis in other distributed property (input above). 9. Partner's basis in other distributed property (lesser of Line 7 or Line 8). 10. Partner's remaining outside basis (Line 7- Line 9). Cannot be

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