Question

Dan receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $30,000. The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500. Dan's basis in the noncash property is: Question 22 options: $26,500. $24,000. $20,000. $10,000. $0.

Answer 1

Answer:

$20,000

Explanation:

Calculation to determine what Dan's basis in the noncash property is:

Using this formula

Basis=Partnership interest basis -Cash

Let plug in the formula

Basis=$30,000-$10,000

Basis=$20,000

Therefore Dan's basis in the noncash property is: $20,000