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Business, 07.05.2020 16:57 anniekwilbourne

Tyson is a 25 percent partner in the KT Partnership. On January 1, KT makes a proportionate distribution of $16,000 cash and land with a $16,000 fair value (inside basis $8,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson's basis in his KT Partnership interest is $20,000. What is Tyson's basis in the distributed land?

a. $16,000 inventory, $8,000 land.

b. $0 inventory, $8,000 land.

c. $8,000 inventory, $0 land.

d. $8,000 inventory, $12,000 land

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