Required information [The following information applies to the questions displayed below.] AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $76,500, which includes his share of the $52,800 of partnership liabilities. Trane generates $43,400 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV Inventory $58,500 $69,200 Land 25,700 31,400 $89,900 $94,900 Totals c. What is AJ's basis in the distributed assets? Inventory Land Basis
Required information [The following information applies to the questions displayed below.] AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $76,500, which includes his share of the $52,800 of partnership liabilities. Trane generates $43,400 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV Inventory $58,500 $69,200 Land 25,700 31,400 $89,900 $94,900 Totals c. What is AJ's basis in the distributed assets? Inventory Land Basis
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 58P
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![Required information
[The following information applies to the questions displayed below.]
AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ
has an outside basis in his interest in Trane of $76,500, which includes his share of the $52,800 of
partnership liabilities. Trane generates $43,400 of income during the year and does not make any
changes to its liabilities. On December 31, Trane makes a proportionate distribution of the
following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if
applicable.)
FMV
Inventory $58,500 $69,200
31,400
25,700
$89,900 $94,900
Land
Totals
Tax
Basis
c. What is AJ's basis in the distributed assets?
Inventory
Land
Basis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e0fefd6-f6db-496c-9a39-e894d1c47056%2F6233cf17-1b5d-4b79-9bea-71c0f96f7095%2Fynxclbe_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ
has an outside basis in his interest in Trane of $76,500, which includes his share of the $52,800 of
partnership liabilities. Trane generates $43,400 of income during the year and does not make any
changes to its liabilities. On December 31, Trane makes a proportionate distribution of the
following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if
applicable.)
FMV
Inventory $58,500 $69,200
31,400
25,700
$89,900 $94,900
Land
Totals
Tax
Basis
c. What is AJ's basis in the distributed assets?
Inventory
Land
Basis
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