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Title: On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On that ... Post by: Mandarini on Feb 14, 2017 On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On that date, Kate's basis in her limited partnership interest is $18,000 (which, of course, includes her share of partnership liabilities). The other partners assume her $6,000 share of liabilities. Just prior to the distribution, the partnership has the following balance sheet. Kate is leaving the partnership but the partnership is continuing.
Assets Basis Fair Market Value Cash Accounts receivable Inventory Land Total $30,000 -0- 15,000 45,000 $90,000 $ 30,000 20,000 25,000 90,000 $165,000 Equities Basis Fair Market Value Notes payable Kate, capital Lynn, capital Mark, capital Total $30,000 12,000 24,000 24,000 $90,000 $ 30,000 27,000 54,000 54,000 $165,000 What is the amount and character of the gain that Kate must recognize on the liquidating distribution? Title: Re: On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On ... Post by: Rimoun on Feb 14, 2017 Content hidden
Title: Re: On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On that ... Post by: Mandarini on Jul 15, 2017 Wow you guys are great!!!!!!!!!!!!!!
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