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kykrilka [37]
2 years ago
6

Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionatedistribution of $16,000 cash, inventory

with a $16,000 fair value (inside basis $8,000), and accountsreceivable with a fair value of $8,000 (inside basis of $0) to Daniela. JRD has no liabilities at thedate of the distribution. Daniela's basis in JRD is $21,000. What is Daniela's basis in the distributedinventory and accounts receivable?A)$8,000 inventory, $0 accounts receivable.B)$5,000 inventory, $0 accounts receivable.C)$6,000 inventory, $1,000 accounts receivable.D)$16,000 inventory, $8,000 accounts receivable.
Business
1 answer:
Olenka [21]2 years ago
8 0

Answer: B. $5,000 inventory, $0 accounts receivable

Explanation:

Daniel's basis in JRD is $21,000

Inventory fair value is $16,000

$21,000 - $16,000 = $5,000

Accounts receivable inside basis is $0.

Inside basis is basically each partner's tax basis in the partnership.

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