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Kathy is a 25% partner in the kdp partnership and receives $137,000 cash in complete liquidation of her partnership interest. kathy's outside basis immediately before the distribution is $143,000. kdp currently has a §754 election in effect and has no hot assets or liabilities. which of the following statements is true? a. kdp will step up the basis of its assets by $6,000 and kathy will recognize a $6,000 loss on the distribution. b.kdp will step up the basis of its assets by $6,000 and kathy will recognize a $6,000 gain on the distribution. c.kdp will step down the basis of its assets by $6,000 and kathy will recognize a $6,000 loss on the distribution. d.kdp will step down the basis of its assets by $6,000 and kathy will recognize a $6,000 gain on the distribution.
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Kathy is a 25% partner in the kdp partnership and receives $137,000 cash in complete liquidation of...
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