Joan is a one third capital and profits interest partner in the
calendar year JKL Partnership. Her adjusted basis for her partnership
interest on July 1 of the current year is $110,000. On that date, she
receives a proportionate non-liquidating current distrubution of the
following assets:

                             Partnership Adj. Basis       Fair Market
Value
Cash                          $60,000                        $60,000
Inventory                     $20,000                        $28,000
Land                          $60,000                        $40,000

A. Calculate Joan's recognized gain or loss on the distribution, If
any.
B. Calculate Joan's basis in the inventory received.
C. Calculate Joan's basis in land received. The land is a capital
asset.
D. Calculate Joan's basis for her partnership interest after the
distribution.

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Clarification of Question by alpa_sanjay-ga on 26 Apr 2003 16:29 PDT

we are talking about United States Of America.