Solution-What is susan basis in the distributed inventory

What is susan basis in the distributed inventory

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Reference no: EM131692150

Question - Susan is a 1/4th partner in a Partnership. On January 1, the partnership distributes $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of $12,000) to Susan. The partnership has no liabilities at the date of the distribution. Susan's outside basis is $20,000. What is Susan's basis in the distributed inventory and accounts receivable?

1. $2,000 inventory, $2,000 accounts receivable

2. $8,000 inventory, $12,000 accounts receivable

3. $0 inventory, $4,000 accounts receivable

4. $16,000 inventory, $8,000 accounts receivable

Reference no: EM131692150

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What is susan basis in the distributed inventory

Reference no: EM131692150

Reference no: EM131692150

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