Randolph is a 30 percent partner in the rd partnership. on january 1, rd distributes $16,000 cash and inventory with a fair value of $45,800 (inside basis of $22,900) to randolph in complete liquidation of his interest. rd has no liabilities at the date of the distribution. randolph's basis in his rd partnership interest is $41,050. what is the amount and character of randolph's gain or loss on the distribution?
In the RD Partnership, Randolph is a 30% partner. Randolph receives a cash payment of $26,000 from RD on January 1 in full liquidation of his investment.
What was Randolph's gain or loss on the distribution in terms of both amount and type?
Gain or loss $0 The basis for Randolph's investment in the RD partnership is $37,000.
What is the foundation of Randolph's distributed inventory and land?
$12,000 in land is the remaining base. The assets that Randolph has the most control over are $15,000 in cash, $10,000 in stock, and $12,000 in land. He begins by first allocating the distributed assets his outside basis in an amount equal to RD's basis.
To know more about Randolph RD visit:-
If your question is not fully disclosed, then try using the search on the site and find other answers on the subject Business.Find another answers
Business, published 27.03.2023
She sells seashells on a seashore But the value of these shells will fall Due to the laws of supply and demand No one wants to buy shells 'cause there's loads on the sandStep 1: you must create a sense of scarcity Shells will sell much better if the people think they’re rare, you see Bare with me, take as many shells as you can find and hide 'em on an island...