Whitney is a 25% partner in the WRW Partnership. On January 1, WRW distributes $80,000...
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Accounting
Whitney is a 25% partner in the WRW Partnership. On January 1, WRW distributes $80,000 cash to Whitney. WRW has no hot assets or liabilities at the date of the distribution. Whitneys basis in WRW is $56,000. What is the amount and character of Whitneys gain or loss from the distribution?
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$24,000 ordinary income.
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$24,000 capital gain.
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$0.
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$24,000 capital loss.
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