15,500 Totals $ 46,500 b. If Aero has a §754 election in place, what is the amount of the special basis adjustment?
15,500 Totals $ 46,500 b. If Aero has a §754 election in place, what is the amount of the special basis adjustment?
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:Cliff's basis in his Aero Partnership interest is $15, 500. Cliff receives a distribution of $25, 100 cash from
Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:
Tax Basis FMV Assets Cash $ 25,100 $ 25, 100 Investment 18,300 18,300 Land 3,100 44,200 Totals $
46,500 $ 87,600 Liabilities and capital Capital-Chris $ 15,500 Capital-Cliff $ 15,500 Capital-Cooper S
15,500 Totals $ 46, 500 b. If Aero has a §754 election in place, what is the amount of the special basis
adjustment?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT