Which of the following would be classified asdisproportionate distributions? Assume A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB partnership.
Question 18 options:
a. Partner A receives $6,000 cash and Partner B receives a capital asset valued at $6,000.
b. Partner A received $6,000 cash and Partner B receives inventory items valued at $6,000 (basis $3,500).
c. Both partners receive unrealized accounts receivables with a basis of $0 and a value of $6,000.
d. Items a. and c. represent disproportionate distributions
e. Items b. and c. represent disproportionate distributions.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here