Tyson is a 25 percent partner in the KT Partnership. On January 1, KT makes a proportionate distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and land with a fair value of $8,000 (inside basis of $12,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson's basis in his KT Partnership interest is $24,000. What is Tyson's basis in the distributed inventory and land?
A. $0 inventory, $8,000 land.
B. $16,000 inventory, $8,000 land.
C. $8,000 inventory, $0 land.
D. $8,000 inventory, $12,000 land.
Answer: C
You might also like to view...
When starting their business, John and Barb would most likely have benefitted from understanding ________
A) social media B) buzz marketing C) public relations campaigns D) network television advertising E) integrated marketing communications
Give three examples of specialty products
What will be an ideal response?
Rhonda was the owner of the company. She often hired family members to work the business and gave them special privileges like extra time off and higher pay. Rhonda failed to meet which challenge of leadership?
A. challenge of consistency B. challenge of privilege C. challenge of information management D. challenge of responsibility
Which of the following casts corporate practitioners in the role of serving as liaisons between their corporations and governmental units?
A. Public affairs D. Issues management B. Lobbying E. Development C. Marketing