Solution-What is franks basis in the distributed inventory

What is franks basis in the distributed inventory and land

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Question - Frank is a partner in a partnership. On January 1st. the partnership distributes $15,000 cash, inventory with a fair value of $20,000 (inside basis of $10,000) and a parcel of land with a fair value of $10,000(inside basis of $5,000) to Frank to complete liquidation of his interest. The partnership has no liabilities at the date of the distribution. Frank's basis in the partnership is $37,000. What is Franks basis in the distributed inventory and land?

A. $10,000 inventory, $10,000 land

B. $10,000 inventory , $5,000 land

C. $20,000 inventory , $10,000 land

D. $10,000 inventory, $12,000 land

Reference no: EM131692147

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What is franks basis in the distributed inventory and land

Reference no: EM131692147

Reference no: EM131692147

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