Megan and Matthew are equal partners in the J & J Partnership (calendar year-end entity). On January 1 of the curre year, they decide to liquidate the partnership. Megan's basis in her partnership interest is $119,000 and Matthew's i $42,600. The two partners receive identical distributions, with each receiving the following assets: (Leave no answ blank. Enter zero if applicable.) Cash Inventory Land Totals Tax Basis $34,750 7,850 975 $43,575 FMV $34,750 9,040 1,570 $45,360 a. What is the amount and character of Megan's recognized gain or loss? ONeither gain nor loss recognized O $73,925 of ordinary loss O $2,095 of ordinary income O $73,925 of capital loss O $2,095 of capital gain
Megan and Matthew are equal partners in the J & J Partnership (calendar year-end entity). On January 1 of the curre year, they decide to liquidate the partnership. Megan's basis in her partnership interest is $119,000 and Matthew's i $42,600. The two partners receive identical distributions, with each receiving the following assets: (Leave no answ blank. Enter zero if applicable.) Cash Inventory Land Totals Tax Basis $34,750 7,850 975 $43,575 FMV $34,750 9,040 1,570 $45,360 a. What is the amount and character of Megan's recognized gain or loss? ONeither gain nor loss recognized O $73,925 of ordinary loss O $2,095 of ordinary income O $73,925 of capital loss O $2,095 of capital gain
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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