partnership tax law 1

Partner A received the following in a nonliquidating distribution:

Basis FMV

Cash $20,000 $20,000

Inventory Item 1 $15,000 $18,000

Inventory Item 2 $12,000 $4,000

Capital Asset 1 $15,000 $8,000

Capital Asset 2 $10,000 $20,000

$72,000 $70,000

Assume A’s basis in the partnership before the distribution was $35,000. What would the bases of the assets be to A?

he ABC partnership has the following balance sheets:

Basis

FMV

Land

$30,000

$60,000

Liabilities

$0

$0

A

$10,000

$20,000

B

$10,000

$20,000

C

$10,000

$20,000

$30,000

$60,000

A sold his (1/3) interest to G for $20,000, with $15,000 payable this year and $5,000 next year. How much and what character of gain will A have to recognize in each of the two years?