Biology Forums - Study Force

Brittany receives a nonliquidating distribution of $48,000 cash from her partnership. Brittany's basis in her partnership interest prior to the distribution is $25,000. What are the tax consequences of the distribution?
A) $48,000 ordinary income; $25,000 partnership basis
B) $48,000 nontaxable return of capital, ($23,000) partnership basis
C) Capital gain of $23,000, $25,000 nontaxable return of capital, $0 partnership basis
D) Ordinary income of $23,000, $25,000 nontaxable return of capital, $0 partnership basis

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