Business, 12.08.2020 06:01 azktanae5855

Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Partner Outside Basis
Justin $22,000
Lauren 22,000

On December 31 of the current year, the partnership makes a pro rata operating distribution of:

Partner Distribution
Justin Cash $25,000
Lauren Cash $18000
Property 9,000 (FMV)
($2,000 to partnership)

Requried:
a. What is the amount and character of Justin's recognized gain or loss?
b. What is Justin's remaining basis in his partnership interest?
c. What is the amount and character of Lauren's recognized gain or loss?
d. What is Lauren's basis in the distributed assets?
e. What is Lauren's remaining basis in her partnership interest?

Answers: 3

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Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership s...

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