In a proportionate liquidating distribution, Arline receives a distribution of $40,000 cash, accounts receivable (basis of $0 and fair market value of $20,000), and land (basis of $20,000 and fair market value of $30,000). In addition, the partnership repays all liabilities, of which Arline's share was $40,000. Arline's basis in the entity immediately before the distribution was $50,000. As a result of the distribution, what is Arline's basis in the accounts receivable and land, and how much gain or loss does she recognize

$0 basis in Account Receivable $30,000 basis in land and $30,000 loss

Explanation:

Basis before the distribution =$50,000

Cash Received = $40,000

Share of liabilities =$40,000

To calculate the basis in the Account Receivable and land and how much gain or loss does she recognize

= Partnership basis - Cash Received - Share of liabilities paid

($50,000 -$40,000 - $40,000)

= ($30,000)

Therefore Arline basis in the Account Receivable $0, $30,000 basis in land and $30,000 loss

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi