Brian is a 25 percent partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (inside basis $8,000) to Brian. BC has no liabilities at the date of the distribution. Brian's basis in his BC Partnership interest is $16,000. What is the amount and character of Brian's gain or loss on the distribution?
A. $0.
B. $12,000 capital gain.
C. $4,000 capital gain.
D. $20,000 capital gain.
Answer: C
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consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for: A. $127,000. B. $0. C. $76,400. D. $124,400. E. $126,000.
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